The stock market is likely to see "another double-digit return next year," said James Paulsen, chief investment strategist at Wells Capital Management.
“The biggest thing that’s going on is that we’re shifting the mindset from one that is worried about a double-dip recession this year to one that is starting to accept that this is a multi-year sustained recovery,” Paulsen told CNBC.
“That allows businesses to expand their planning horizons, which makes staff additions look okay, makes cap spending programs look profitable…all of which will add to economic growth next year and will improve economic confidence among consumers and I think that is a sustained driving force.”
But don’t expect the markets to see a straight run-up in 2011, warned Paulsen. Instead, expect the pattern to “ebb and flow.”
“Certainly optimism is back [and] that could create an interim selloff but I think over next year, it’s still another pretty good year.”
Scorecard—What He Said:
- Paulsen's Previous Appearance on CNBC (Dec. 22, 2010)
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No immediate information was available for Paulsen or his firm.