This week the Dow crossed 24,000. The stock market keeps rising as nearly every month milestones are reached and then surpassed.It 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 we may well have that in 2018," The Leuthold Group's Jim Paulsen said.
"What I'd look at is making sure that you reallocate funds. Some of your best holdings will have gone up in weighing, and your stuff that is lagging would have fallen.It is the time to rebalance your portfolio for 2018. I still think you'll want to be prepared for a little more difficulty in 2018. Certainly more difficult than we've had this year." Considering that scenario, the strategist recommends investors be "a little more conservative in how they invest."
Paulsen suggests reallocating your mix "between stocks and bonds."
"But I'd also rebalance some of my sector exposures, and become a little more defensive. Paulsen says he would take "a little out of aggressive technology that's done really well, and move a a little bit to energy and financials for 2018."
Source: Bloomberg Pro Terminal
Trader Bozhidar Arabadzhiev
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