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

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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

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