In the meantime, the major indexes were awash in volatility–the new normal for the markets–on Thursday as the Dow plunged over 600 points after its largest single-day gain in history on Wednesday. To Paulsen, this signaled a green light for investors to dial up the aggression.
“I don’t know where the bottom is here and it’s going to be volatile for a little while now, but I think it’s time to lean back towards [a]more aggressive stance in your equity portfolio,” Paulsen said. “I don’t know if we’ll set new highs than we’ve already seen, but I think we’re going to have a pretty good 2019.”
Paulsen’s view is in line with Art Cashin of UBS and Guggenheim’s Scott Minerd, who both said the central bank “is done raising rates and maybe will even cut rates” as opposed to their forecasts of two more rate hikes.
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