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Stocks Will Hit New Highs: It's "Very Early" in the Recovery, Jim Paulsen Says

Posted Nov 02, 2009 07:30am EST by Aaron Task in Investing, Newsmakers
Despite a "persistent array" of better-than-expected news on the economy, earnings and the healing of the financial markets, the "wall of worry" remains remarkably high, says James Paulsen, who oversees $375 billion as chief investment officer of Wells Capital Management.

That's very bullish from a contrarian standpoint, and Paulsen believes we are "very early" in the recovery for both the economy and the stock market.

"There will come a time when the recovery gets more mature and you're going to convert bears to bulls and we'll get buyers that will take this market still higher," he says.

How much higher?

It won't be a straight line and won't happen overnight, but Paulsen predicts both corporate profits and blue-chip averages will revisit all-time high levels before this cycle ends.

Editor's note: The accompanying video was taped prior to Friday's market rout. But given Paulsen's uber-bullish outlook, he'd probably view it as a buying opportunity.

120 Comments

Wayne
Wayne - Monday November 02, 2009 07:42AM EST

LIES ALWAYS RAISE THE MARKET- THE TRUTH LOWERS .

Tex
Tex - Monday November 02, 2009 07:42AM EST

DOW 16000 by 2016! Hee-Hah!

Andrew
Andrew - Monday November 02, 2009 07:44AM EST

The "wall of worry" is consistent with very high, very long, unabated unemployment. It's about the jobs picture stupid. Andrew Gross CEO Automotive Consulting Services, LLC dba Car Czar Consulting http://carczarconsulting.com 503-701-6003 andy@carczarconsulting.com

Yahoo! Finance User
Yahoo! Finance User - Monday November 02, 2009 07:45AM EST

Great to hear better than expected news for the last few weeks. Hopefully, that will translate to jobs soon. Let's do our part - www.myamericangoods.com

jawsnyc
jawsnyc - Monday November 02, 2009 07:50AM EST

tomorrow there will be an interview with somebody saying DOW to revisit lows / market jitters / recovery doubts etc etc.

Rick
Rick - Monday November 02, 2009 07:56AM EST

What else would you expect him to say ... he needs you to invest into the market in order to make money for his clients ...dahhhhh

Yahoo! Finance User
Yahoo! Finance User - Monday November 02, 2009 08:00AM EST

I have put all the money into stocks, the market better go up.

H-man
H-man - Monday November 02, 2009 08:00AM EST

In January, 2008, this same idiot OR LIAR predicted there would be no recession and that the market would enjoy even higher margins. He even stated the housing market problem would be considerably less severe than many were predicting. Why would anyone believe him now?

Rick
Rick - Monday November 02, 2009 08:03AM EST

This guy talks for about 5-6minutes and says absolutely nothing ... no facts no data just very vague ... and I am supoose to see this as positive.

James
James - Monday November 02, 2009 08:03AM EST

BUY Cell Therapeutics!!! CTIC CTIC CTIC Another Gem is AGEN AGEN AGEN!

James
James - Monday November 02, 2009 08:04AM EST

BUY Cell Therapeutics!!! CTIC CTIC CTIC Another Gem is AGEN AGEN AGEN!

James
James - Monday November 02, 2009 08:04AM EST

BUY Cell Therapeutics!!! CTIC CTIC CTIC Another Gem is AGEN AGEN AGEN!

Josh
Josh - Monday November 02, 2009 08:05AM EST

This is all great but WE NEED JOBS TO EMPLOY AMERICANS. Believe me I am all for positive and fast markets but without fundamentals like employment and consumer sentiment none of this matters.

Yahoo! Finance User
Yahoo! Finance User - Monday November 02, 2009 08:08AM EST

As the economy recovers money will be pulled from the market for other uses. Market will drop. IMHO This guy needs buyers.

Yahoo! Finance User
Yahoo! Finance User - Monday November 02, 2009 08:11AM EST

A true Wall Street Whore.

popey
popey - Monday November 02, 2009 08:11AM EST

Provides vague reasons for optimism. Ignores systemic problems and weaknesses - consumer sentiment, consumer debt, commercial real estate, residential real estate, toxic asset accumulation, unemployment, deflation, continued deleveraging. Step back and take a look. Apparent economic progress is a short-term mirage.

Yahoo! Finance User
Yahoo! Finance User - Monday November 02, 2009 08:14AM EST

Stocks will go up or down today. Price of gold will be higher or lower today. S&P will bob up and down today. There will be some more unemployment today and some unemployment today. What a Jackoff.

Rey
Rey - Monday November 02, 2009 08:15AM EST

New highs my A$$ // This guy is on Crack // The Bears are waiting outside the door // They are going to stampede WS very soon

DONALD
DONALD - Monday November 02, 2009 08:20AM EST

Tex you got the right idea but your timing wrong. Dow 13,500 by end of 2010 and 16,500 at end of 2011

thankyoursi
thankyoursi - Monday November 02, 2009 08:23AM EST

He wants to sell. He is truly a schill. Better than expected is his argument to buy. So, if MSFT sales are down by say 14%.......but they expected -16 % that's a reason to buy....hmmmm..... How's this for a comparison.....someone has a terminal illness, and has a year to live, but lives an extra 6 months.......then they die.....that's a number of companies still sitting in the SPX

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