Paulsen: Fed May Spark ‘Full Blown Correction’

Paulsen got cautious on US stocks at the end of last year and predicted a sideways 2015, which has come to pass so far, with the Dow Jones Industrial Average up about 1.5% this year based on Friday’s close. …

Acknowledging the upswing in stocks, Paulsen said the market could go higher in the short term. “But we may get a full blown correction yet,” he warned, pointing out it’s been the “third-longest period in post-war history without a correction.”

“The big event is yet to come, and that’s the [Federal Reserve raising interest rates], and I think it’s going to happen this year. … I guess I lean more toward September … We’re going from the mother of all monetary easing cycles, we’re now finally going to turn the monetary boat for the first time. … To think we’re just going to skate right through that seems unrealistic.”

— Excerpt contributed by Jason Kelly

_____________________________________

Z-val: Jim Paulsen
Via: CNBC
Date: 7/20/15
Disposition: Short-Term Bearish
S&P 500 on 7/20/15: 2128
S&P 500 on 10/20/15: 2031
Change: -4.6%
Judgment: Right

Z-val definition and more forecasts in The Z-val Zone.

Paulsen

Scorecard

This Forecast

Accuracy

of 1

Judged

Forecast

Created with Snap
This entry was posted in Z-vals and tagged . Bookmark the permalink. Both comments and trackbacks are currently closed.
  • The Kelly Letter
    A Complete Investment Management System
    The Kelly Letter  every Sunday morning by email.
    Like no other. Many subscribers say this is the best read of their week, astonishing in its ability to distill seven days of noise into one succinct overview of the very few items that might matter. Start your Sundays right!
    A one-page Quick Start Guide
    with page number references to full information in The 3% Signal. You'll receive access to this right away so you can begin transforming your portfolio into a performance machine immediately.
    The 3Sig Calculator.
    A thing of beauty! You'll use it to generate your own personal signals every quarter including exact share amounts to buy and sell based on your account balances. It emails you the results to make later quarters easy by keeping last quarter's numbers at your fingertips. Some subscribers say this tool alone justifies their subscription price.
    The subscriber-only section of this website
    where likeminded investors are commenting on notes and discussing in forums. Jason joins these interactions every day. They're a treasure trove of investing tips and wisdom.
    The archive of Kelly Letter notes.
    It’s a research center, searchable and smartly tagged to make gathering time-stamped material on covered subjects easy.
    The subscriber podcast.
    Jason reads every letter word-for-word. This feature was requested by subscribers who prefer audio learning. They listen on their Monday morning commute, during a workout, or while reading along at their computer.



    $200/year
    Save 17%



    $20/month
    Pay as you go
    Or sign up to receive free email and learn more about the system.
    Do you have a question?
Bestselling Financial Author