In this episode of Excess Returns, we are joined by Jim Paulsen of Paulsen Perspectives. We unpack the complexities of tariffs, Federal Reserve policies, and investor psychology amidst a turbulent market environment. Jim brings his decades of experience to provide context, rational analysis, and long-term perspectives, steering clear of bold predictions and focusing instead on practical advice for navigating these uncertain times.

Main Topics Covered:

Jim’s perspective on market corrections and advice for investors during volatile periods, emphasizing emotional discipline and long-term thinking.The economic implications of tariffs, debunking the notion that they’re inflationary and exploring their contractionary effects.Critique of Federal Reserve policy, including their unprecedented actions and failure to ease despite market signals of deflation risk.Analysis of the U.S. dollar’s value and its impact on trade competitiveness, proposing a weaker dollar as an alternative to tariffs.The resilience of the private sector, bolstered by strong balance sheets and liquidity, as a buffer against recession fears.Thoughts on government debt, executive overreach, and Trump administration policies like deregulation and immigration.Investment strategies for the current environment.