According to BlockBeats, The Leuthold Group's Chief Investment Strategist Jim Paulsen stated that despite concerns from policymakers and investors about an overheating economy, a slowdown is more likely in 2025, which could lead to a correction in the stock market of at least 10%.
Jim Paulsen pointed out that since 2003, fluctuations in bond yields have typically led to economic surprises, with declining yields indicating economic improvement, and vice versa. Currently, a bond yield of 4.6% suggests that the economic surprise index for the first quarter will slow to -35, and GDP will also slow down.
Jim Paulsen stated that if concerns about an economic slowdown worsen, the stock market may pause its rise, or even experience a correction of 10% to 15%.
