A new measure of financial conditions shows the US economy heading for a rough patch

Veteran strategist Jim Paulsen has warned that the US economy is heading for a rough patch, citing a "cocktail of past contractionary forces." He introduced a new gauge, the Leading Financial Conditions Gauge, which measures the tightness of financial conditions by tracking five economic policies and three economic forces. According to Paulsen, the gauge is currently in territory that has preceded every major recession since 1970.

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