Is The Market Priced for Perfection“Investors have already priced in everything we can hope for in terms of an economic and profit recovery,”

The article discusses how the rapid recover in the stock market from March through December of last year will probably not continue this year. “Investors have already priced in everything we can hope for in terms of an economic and profit recovery,” This is the reason for a lack of confidence in the outlook of a rapidly recovering economy. James W. Paulsen, chief investment strategist in Minneapolis, for Wells Capital Management, said that “when the market gets extended and optimism emerges, a sense of vulnerability develops.” In this case, the market was vulnerable to what Mr. Paulsen described as “government volatility.”