Strategist Jim Paulsen says prepare for a stock market correction in 2018

This kind of week the Dow crossed 24,000. The stock market keeps rising as nearly every month milestones are reached and also also also then surpassed.

the idea was less than a year ago when the Dow hit 20,000 on Jan. 25. Can the rally continue?

“I think we’re due for a correction and also also also we may well have which in 2018,” The Leuthold Group’s Jim Paulsen tells CNBC’s “On The Money” in an interview.

nevertheless the chief investment strategist at the asset management firm said, “I don’t definitely see the end of the recovery yet. and also also also I don’t see a bear market.”

What will This kind of year’s rally mean for your retirement savings when you open your 401(k) statements at the end of the year?

“What I’d look at can be producing sure which you reallocate funds. Some of your best holdings will have gone up in weighing, and also also also your stuff which can be lagging would likely have fallen.” the idea can be the time to rebalance your portfolio for 2018, Paulsen suggests.

He cautions, “I still think you’ll want to be prepared for a little more difficulty in 2018. Certainly (more difficult) than we’ve had This kind of year.” Considering which scenario, the strategist recommends investors be “a little more conservative in how they invest.”

Paulsen suggests reallocating your mix “between stocks and also also also bonds.”

“nevertheless I’d also rebalance some of my sector exposures, and also also also become a little more defensive. Paulsen says he would likely take “a little out of aggressive technology which’s done definitely well, and also also also move a a little bit to energy and also also also financials for 2018.”

nevertheless Paulsen told CNBC if there can be a market correction, the idea could be a buying opportunity.

“I’d look at what I want to buy on the cheap at which point, or I’d allocate more funds too.”

If you’ve missed This kind of rally and also also also don’t own stocks can be the idea too late to get in right now? Paulsen disagreed.

“I wouldn’t say which. I think if you haven’t got money from the stock market, I would likely definitely get some in there, nevertheless I’d do the idea over the course of the next 12 months. A little bit every month, rather than deciding what day to put the idea all in.”

On the Money airs on CNBC Saturday at 5:30 am ET, or check listings for air times in local markets.

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