Traders and financial professionals work on the floor of the New York Stock Exchange Drew Angerer/Getty Images James Paulsen, Chief Investment Strategist of The Leuthold Group says stock investors shouldn't fear inflation. Paulsen told investors in a letter that inflation is only a concern for stocks when real economic growth is weak. The strategist said what matters is not either "inflation" or "growth," but the "mix" of the two. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. The stock market's inflation fears may be overblown if explosive economic growth comes to fruition to create a perfect "mix" for more gains, according to James Paulsen, Chief Investment Strategist of The Leuthold Group.In a letter to investors on Friday, Paulsen said that although inflation may be on the rise, that hasn't always meant poor returns for the stock market as long as real economic growth is strong.And with the post-pandemic reopening in sight, many analysts are arguing real economic growth will be impressive in the second half of the year.In fact, a monthly Bloomberg survey of economists showed annual GDP expectations nearly double to 5.5% from what experts were predicting just two months ago.In his letter, Paulsen highlighted the two components that have made up nominal GDP since 1950: annual real GDP growth and annual inflation growth.The strategist illustrated how a perfect "mix" of these components has led to significant stock market gains in the past.

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