Jim Paulsen, chief investment strategist of Wells Capital Management, presented a rosy economic growth forecast on CNBC this morning. Paulsen said economic numbers coming in lately including jobless claims, retail sales, industrial production, have been better than expected; along with confidence on the increase. Paulsen believes economic growth could come in as high as 4% in the second quarter. Paulsen stated the growth he foresees could push the S&P 500 to between 1,900 and 2,000.
For the year, Paulsen sees economic growth of 3 1/2%; far more than people expect. Paulsen stated bond yields could rise suddenly in this environment, which could bring the Fed back into the equation and cause a problem for stocks sometime in the second half of the year.
Back in June 2013, the bullish Paulsen said the S&P 500 would hit 1,700 and he was positive on Europe and the emerging markets [link].