Cyclical Stocks Hit 36-Year Low, Signaling U.S. Recession Risk: Paulsen

According to Business Insider, Wall Street strategist Jim Paulsen warned on Tuesday (June 9) that U.S. stock market internals are flashing recession signals. In a Substack post, Paulsen noted that cyclical stocks—which typically move in tandem with the broader economy—have fallen to their lowest relative price since 1990. He also highlighted that non-discretionary consumer stocks remain near 26-year lows, suggesting weak consumer spending momentum despite strong employment data. Paulsen concluded that these internal market indicators point to economic weakness rather than improvement.
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