Rate Surge With Rising U.S. Confidence a Positive Sign

Concern that a surge in U.S. bond yields will curb the expansion is overblown, says money manager James Paulsen. When coupled with gains in confidence, higher borrowing costs are a healthy sign for the world’s largest economy.

“Confidence is at the center of everything here,” said Paulsen, the chief investment strategist at Wells Capital Management in Minneapolis with $340 billion in assets under management. “If I had to pick one overriding thing, it’s confidence that’s been running through the financial markets and the economy this year.”