Jim Paulsen, a big Wall Street friend and chief investment strategist at investment research firm Leuthold Group, warned that the new U.S. administration’s proposed massive stimulus measures threaten to trigger a recession.
Foreign media reports, Paulsen believes that in order for the United States to survive the Epidemic crisis, a large amount of aid is necessary, but he fears that too much spending will trigger severe Inflation, thus necessitating further acceleration of austerity, while possibly leading to global confidence and the loss of U.S. government finances, which is feared to be the biggest risk so far this year. He also1 pointed out that, ironically, what is intended to help people survive the epidemic could trigger another severe recession. He makes no secret of the fact that this is an overuse and abuse of global economic policy, especially in the United States.
However, it is too early to act on potential inflation, as certain factors can offset the impact, such as an aging population and technology-driven innovation. He remains bullish on the stock market this year, but given the potential for policy to increase risk, which will become greater as we move into 2022-2024, the S&P 500 is expected to close the year at 4,100 points, or 8% higher than current levels.
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