One guy I regularly listen to is Jim Paulsen of Wells Capital Management. While a couple of years back he was negative about those he called “perpetually bullish” he is getting a little bullish himself lately. The story cited below has a great quote. Read the whole store at the link below to fully understand what he sees as the positives and negatives.
This from Yahoo Finance’s “Breakout” Blog by Matt Nesto (Full article link below)
The steady (and not so slow) migration out of Treasuries, Paulsen says. “Finally you’re seeing people leave the bond market for the stock market to some extent,” he points out, citing the move in the 10-year yield (^TNX) to 1.85% from 1.40% in very short order. That matters, he says because it suggests that “even the bond players are aligning for a little stronger economy, a little greater rally.”
He also likes the change of leadership that has not only seen cyclicals like Tech, Materials, and Industrials starting to take the lead but has also “seen the defensives giving way,” with things like Staples, Healthcare, and the Dividend Aristocrats fund rolling over.
And finally, Paulsen cites sensitivity – or the lack of it, more specifically – as another reason why this low volume summer melt-up is set to continue beyond the back-to-school sales.