Jim Paulsen STOCK MARKET WILL BE WEAK FOR 5 YEARS

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Jim polson has come out and said that the stock market returns we’re gonna get for the next five years are gonna be very weak we’re gonna look at exactly why he’s making this expectation that the markets gonna be weak for the next five years when i look at what he said and i’m gonna tell you why you don’t have as much to worry about if you are a stock picker out

There and i’ll explain why in a detail right there so right off the bat let’s check this out here guys somebody must have flipped his flapjacks wrong he is bearish on the stock market he says stock market returns are gonna be weak for the next five years okay five years now who is this guy jim paulsen i’ve seen him a lot on cnbc and whatnot over the years bloomberg

And whatnot he’s a chief investment strategist at the laphroaig group llc he’s also a member of the investment committee he authors market and economic commentary like i said i’ve seen him on cnbc bloomberg and a lot of those publications in the past olson has been an investment industry professional since 1983 most recently as chief investment strategist at

Wells capital management where he worked for 20 years all right i just thought it was fun to like look up his net worth and i was like dang this guy’s worth seven point eight billion i can’t believe it that’s insane but i found it wasn’t him it was a guy named john paulson who i think runs a hedge fund i couldn’t find anything about it but so let’s look at what he

Actually has to say here okay he says get used to it stock market returns are gonna or setting up to have a tough five years ahead as economic benefits shift from wall street to main street that’s a conclusion of a model constructed by jim paulsen chief investment strategist at laphroaig group who said a sharp rising consumer confidence compared with the generational

Low in unemployment has happened before and almost always signified a low or worse in the mark this is quote from him because confidence is high today the unemployment is low ie the capacity this recovery is near a peak the risk return profile of the stock market had worsened considerably now and investors should prepare for far less satisfying returns for the neck

Five years polson said in a note to klein’s it’s a big prediction there say the markets gonna be weak for the next five years but it’s not like he’s got a doomsday theory for the overall stock market who’s not like he’s one of those guys that has a doomsday theory for the whole economy we’re gonna have a crash a stock market crash i a massive recession a depression

You know he’s not one of those guys he’s just saying that the market returns are gonna be weak the timing of analysis seems apt as multiple economic signs point to above trend growth ahead while stock prices have languished as we know recently okay however polson said his main street meter isn’t met by a market timing device but rather a look over the long term

On what can be expected from stocks now the economy may have turned a quarter rising values in the msm almost always other than the 1970s i guess was an exception coincide with lower equity values and vice-versa the indicator reached its lowest reading since 1960 as a current bull market began it now sits at the third highest level as measured by the university

Of michigan’s consumer confidence survey compared to the labor department’s core measure of unemployment when the ratio is high main street has probably been good for a while poulsen says ok so once again he’s not necessarily bearish on the overall stock market in the sense of oh we’re gonna have a stock market crash coming up we got a massive recession coming up

Anything like that he just says while looking at the trends and look at how the economy strengthens i we believe that main street is going to start getting benefits and wage growth and those type of things but actually wall street the returns are gonna be very good so now i want to get into two points with you guys on why you shouldn’t worry quite as much ok you

Shouldn’t worry quite as much so the first point the first point we’ll talk about here is you assuming you know you’re a subscriber here and you actually pick stocks yourself you’re what we call a stock picker okay you are a stock picker and the great thing about being a stock picker is regardless whether the market let’s say goes you goes nowhere for a year or

Whether the stock market goes up 5% a year or twenty-something percent in a year like it did last year right regardless of what happens you as a stock picker give yourself an opportunity for phenomenal returns okay the only time a stock picker really you know can’t make much money in the market is maybe if we’re in a massive crash at a particular time a massive

Recession something like that and even those times you can pick up a lot of great values everywhere and also if you know how to play with options you can make a lot of money on put options some of those kind of things so there’s always there’s always opportunity to make money in the market but years where the stock market is not going up a ton you as a stock picker

Give yourself a great opportunity like this is our time to shine right if the stock market is gonna be weak the next five years okay if it only goes up 1% 3% 5% a year it is what it is us as a stock picker guess what’s gonna happen okay there’s gonna be a ton of stocks that go down massively there’s gonna be a ton of stocks that go up massively it’s our job to

Find the ones that are gonna go up massively and invest in those companies the ones that are undervalued and have big growth going for them okay it is a simple dealio okay it’s a simple dealio so you as a stock picker that’s the beautiful thing is you give yourself the opportunity when the stock market just goes up a ton right everybody makes money everybody makes