Paulsen: This Isn't a Sugar High

Wells Capital’s Jim Paulsen thinks stocks are on their way to record highs, and says the economy is stronger than the Federal Reserve is giving it credit for. Paulson tells Bloomberg that he sees growth in the U.S. continuing to outpace expectations — he expects GDP to grow at about 2.5% to 3% this year. He also thinks factors like an improving housing market are causing confidence to rise. Treasury yields should be about 2 points higher than they are right now based on economic fundamentals and inflation levels, he adds, saying that the Fed’s crisis-level interest rate policy has fostered the idea that the market’s rise is a “sugar high” — a notion he disputes.

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