Paulsen Says ‘Proceed With Caution’ Across Many Asset Classes

With U.S. stocks following their first quarterly loss in more than two years with an ugly April start, it’s no wonder they’re stealing the spotlight. But it’s not just equities: Signs of stress have surfaced this year in other asset classes, too.

That’s according to Jim Paulsen, the 60-year-old chief investment strategist at Leuthold Weeden Capital Management, who was named the most accurate forecaster in 2001 by Bloomberg Businessweek. He created an indicator that tracks tensions across asset classes called the “Markets Message Indicator,” and it’s now rolling over after peaking in January at one of its highest levels in the past 40 years, a sign cracks may be starting to show across financial markets.