James Paulsen, chief investment strategist at Leuthold Group, sees trouble brewing in the growing disconnect between US equity sectors. He told CNBC earlier this week that correlations among US equities is unusually low and flashing a warning signal. That’s an especially dangerous sign when the stock market’s valuation is so high. Let’s dig deeper into the topic by crunching correlations on the major sector ETFs along with a broad equity market fund.
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