Analyst: The US economy may unexpectedly slow down next year, leading to a 10% stock market correction
Jim Paulsen, Chief Investment Strategist at The Leuthold Group, stated that despite policy officials and investors seemingly growing more concerned about the possibility of overheating economic growth, he believes it is more likely that an unexpected economic slowdown will occur in 2025. This kind of surprise could potentially lead to a stock market correction of at least 10%. Jim Paulsen listed several indicators proving weakened economic growth such as the Citigroup Economic Surprise Index, fluctuations in bond yields, the U.S. Financial Conditions Index etc., and indicated that if an unexpected economic slowdown intensifies people's worries, the stock market may pause its rise even if there isn't a 10% to 15% correction.
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