James Paulsen, chief investment strategist at Wells Capital Management, told CNBC’s “Closing Bell” that the economy beat lowered expectations, igniting Monday’s market rally.
“In the last 45 days, initiated by the Feb. 26 plunge, expectations have really been brought down,” Paulsen said Monday. “We’ve brought expectations on the economy down to 1% to 2% real GDP growth, and earnings down to 3%. What we’re seeing here in the last week or so is beating low expectations. Jobs are better than we thought. We found out today that retail sales are better than we thought, and early earnings reports have come in stronger than anticipated. Combine that with lots of liquidity and still low interest rates and you get the rally you see here today and round the globe.”