Wall Street Strategist Warns S&P 500 Could Face 10-20% Correction Amid Six Risk Signals

SPX500-1.43%
According to Business Insider, Jim Paulsen, former chief strategist at Leuthold Group, recently warned that the S&P 500 may face a correction of 10-20% in coming months despite gains in the second quarter. Paulsen identified multiple warning indicators suggesting the market has become overheated, including tightening economic policy, peaking oil prices, divergence between consumer confidence and stock performance, concentration of gains in tech stocks, elevated investor optimism, and declining market liquidity. The 10-year U.S. Treasury yield rose to 4.49% on June 21, approaching the 4.5% level closely watched by markets.
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