The higher the “wall of worry” that US stocks face, the faster they seem to climb. Monday's closing was only one step away from its all-time high. However, according to Jim Paulsen, a high-profile veteran investor, the cumulative pressure of oil prices at $100 per barrel, US bond yields reaching 5%, and the strengthening of the US dollar have not really had a significant impact on the market. Paulsen said that in the past, when these three factors simultaneously put pressure on the S&P 500 index, the index fell by up to 15% within the next three to five months. If this situation were to be repeated, the S&P 500 index would record its first annual decline this year since 2022. This will hit bulls who are betting on the continuation of the stock market's record rally. Paulsen believes that although strong corporate profits and enthusiasm surrounding artificial intelligence still support the S&P 500 index at current levels, the negative effects of rising yields, the dollar, and oil prices will soon become apparent. Paulsen said, “We're about to face a significant reality test. Gravity may soon prove once again that it has never lost its hand on the economy and the stock market.”

The higher the “wall of worry” facing US stocks, the faster they seem to climb. Monday's closing was only one step away from its all-time high. However, according to Jim Paulsen, a high-profile veteran investor, the cumulative pressure of oil prices at $100 per barrel, US bond yields reaching 5%, and the strengthening of the US dollar have not really had a significant impact on the market. Paulsen said that in the past, when these three factors simultaneously put pressure on the S&P 500 index, the index fell by up to 15% within the next three to five months. If this situation were to be repeated, the S&P 500 index would record its first annual decline this year since 2022. This will hit bulls who are betting on the continuation of the stock market's record rally. Paulsen believes that although strong corporate profits and enthusiasm surrounding artificial intelligence still support the S&P 500 index at current levels, the negative effects of rising yields, the dollar, and oil prices will soon become apparent. Paulsen said, “We're about to face a significant reality test. Gravity may soon prove once again that it has never lost its hand on the economy and the stock market.”