Economist Jim Paulsen Forecasts a ‘Growth Bomb’

 $2.5 trillion of sidelined savings

The U.S. economy just came off a pretty good quarter—actually, at an annual rate of 33.1%, the strongest ever in records going back to 1948. Economist Jim Paulsen says there’s more where that came, because consumers have lots of savings and pent-up demand. All that’s needed is an increase in consumer confidence to set off a “growth bomb,” says Paulsen.

“More than $2.5 trillion of sidelined savings is the fuel for a growth bomb waiting to explode,” Paulsen, chief investment strategist for Minneapolis-based Leuthold Group LLC, wrote in a note to clients on Nov. 2. “Additional fuel isn’t needed; the fuse just needs to be lit.”

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