Maggie Lake Talking Markets Episode 92: Is There Untapped Value In the S&P? With Jim Paulsen.
Oct 6, 2025
Jim Paulsen, an economist and market strategist known for his insights in the Paulsen Perspectives Substack, joins the discussion on the S&P 500's hidden values. He explores the dual reality of soaring tech valuations versus the potential of traditional sectors like small caps. The episode dives into AI's promise and risks, the complexities of valuing evolving tech, and why a rotation to neglected areas might be on the horizon. Paulsen also addresses how easing policies could spark broader market engagement, making a case for a more balanced investment strategy.
AI Snips
Chapters
Transcript
Episode notes
AI Is An Ever-Morphing Cycle
- AI and recent tech advances morph rapidly and keep evolving, unlike past single-product inventions.
- These cycles sustain themselves by constant innovation rather than one-time product adoption.
Market Split: New Era Versus Old Era
- Since 2022 the bull market has been extremely concentrated in information and communications stocks while much of the economy lagged.
- That concentration reflects a split between a new-era innovation cycle and an old-era economy held back by tightening policy.
A Bull Market Under Tightening
- This bull market is unique because it began and largely ran while policy tightened, not eased.
- Fed rate hikes, balance sheet shrinkage, and negative money growth kept much of the older economy constrained.