Jim Paulsen says inflation has peaked: is it time to start buying again?

U.S. inflation hit 8.5% in March – highest since 1981, and Jim Paulsen, the chief investment strategist at Leuthold Group says it’s as bad as it gets.

Paulsen’s remarks on CNBC’s ‘Squawk Box’

The talk of an aggressive Fed has the S&P 500 index now down nearly 10% since late March. Still, Paulsen sees reason why it might be a good time to start buying again. On CNBC’s “Squawk Box”, he said:

I think we are at peak inflation and because of that we’re at peak fear. And both are pretty close to rolling over. If inflation does roll over, fears will ease, and I think that will set up the second leg of this bull market.

A day earlier, Mad Money host and famed investor Jim Cramer also said investors should brace for a possible recovery in the U.S. equities.

Paulsen sees a soft landing ahead

Despite sell-off, the benchmark continues to hold its previous low on March 8th. According to the money manager, the U.S. central bank could still orchestrate a soft landing. Paulsen noted:

Every yield in the economy except for one lonely interest rate has been significantly increased. There’s been plenty of tightening. That’s why stock market has been struggling. The tightening signals have bought over, which means we’ll have a soft landing.

The Federal Reserve has signalled a 50 bps increase in May and plans on trimming its balance sheet by $95 billion a month, which could also start as early as next month.

The post Jim Paulsen says inflation has peaked: is it time to start buying again? appeared first on Invezz.

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