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Stocks in danger zone because ‘inflation has changed its stripes,’ market watcher Jim Paulsen warns

May 10, 2018


The Dow may have seen its first five-day win streak since February, but Leuthold Group’s Jim Paulsen isn’t running with the bulls.

The firm’s chief investment strategist says he wouldn’t be surprised if stocks soon retest this year’s correction lows due to rising inflation.

“You’re seeing more and more evidence that inflation has changed its stripes and is headed higher,” Paulsen said Wednesday on CNBC’s “Trading Nation.” “What we’re doing, as a result, is being forced to readjust interest rates and ultimately price-earnings multiples in stocks.”

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