Wells Capital Management's Jim Paulsen believes the market has corrected many of its imbalances in recent weeks, from the current rotation out of momentum names to "excess sentiment" in more defensive names. That's setting up the market for another bull run, despite five years of record highs and valuations since the 2008 financial crisis, he said in an interview with CNBC.
"What we're doing is refreshing this bull market in the last several months," Paulsen said on "Squawk on the Street." "We've corrected any excess valuation. We've corrected any excess sentiment that's creeped up. ... We're setting up for another run."