Jim Paulsen - Consumer Discretionary Stocks As A Leading Indicator

Jim Paulsen of Wells Capital Management, in his 10/17 investment letter, notes that the S&P Consumer Discretionary Stock Price Index was recently at an "all-time" relative price high.  He argues that this is evidence that the U.S. economy is not going into recession.  Furthermore, based on the record of recent decades, an uptick in consumer discretionary spending is a precursor of private sector job growth. 

The VIX As A Positive Indicator

Jim Paulsen of Wells Capital Management and Jeffrey Kleintop of LPL Financial told Bloomberg that the rise of the VIX, the Chicago Board Options Exchange Volatility Index, above 40 is a positive for the market. For Paulsen, this measure currently indicates near panic and as such is a contrarian buy signal.