The Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) have achieved yet another record close on Wednesday, continuing their impressive bull market run. Amid this upward trajectory, veteran strategist Jim Paulsen offers his insights on the current market dynamics and future outlook.

Paulsen draws a distinction between typical bull markets and the current one, noting that traditionally, bull markets are initiated by the Federal Reserve easing monetary policy to avoid a recession. This usually results in declining bond yields, increasing money supply, advancing fiscal stimulus, and a weakening dollar. He explains, "The beginning of a bull is so fantastic not only in terms of how much the market rises but how much it's broad participation across a variety of names." However, Paulsen points out that this pattern diverges in the current bull market, as the Federal Reserve maintained a "tight" monetary stance until about two weeks ago.

"It's the only bull market in post-war history that its entire existence was under a tightening Fed," Paulsen tells Yahoo Finance, highlighting the unique nature of the current market environment.

Despite the bull market being two years old, Paulsen believes there's still a "fair amount" of runway left, citing a lack of "vulnerabilities" in the market. He particularly emphasizes the "slack in the labor market" as a factor that could allow for continued growth for some time.

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This post was written by Angel Smith