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

https://www.cnbc.com/2017/12/02/strategist-jim-paulsen-says-prepare-for-a-stock-market-correction-in-2018.html

This article gives the opinion of a famous and respected investment strategist, Jim Paulsen. Paulsen, like many other analysts, believe the market as well as the economy are due for a correction. This article is very timely because we had just heard from three economic experts at the economic outlook conference. While all of those panelists had positive outlooks on the economy going into 2018, they also had warned of a potential correction or pullback from the intense growth we have been facing.

Since 2007-2008, our economy has been recovering, very strongly. We have hit new highs in the stock market almost monthly, unemployment is at some of its lowest rates in decades, and while the Fed worries about inflation, the lower prices are actually positive to consumers in the short run. Recently, investors have worried about a correction in the market due to the over-inflated stock values, index prices, and other indicators. Also, many believe an asset bubble is forming, one that is similar to the housing bubble in '07. 

Paulsen has suggested people start to reallocate their funds amongst their portfolio. It is time to move money out of riskier investments, and into safer, less volatile investments. He says that people shouldn't worry to much about the stock market right now and still believes we will see growth in values and stock prices well into early parts of 2018. However, people cannot get complacent as a correction is almost inevitable. Every 8-15 years the market experiences a correction in share prices. We are approaching that time and all of the other indicators have pointed that a correction is pending.

The problem is, no one knows when the correction will happen. No one knows how big or how small the correction people. Lastly, people don't know what industries, sectors, or firms will get hit the hardest. Paulsen says to rebalance some of your sector exposures and to allocate funds to safer sectors that can still perform in an economic downturn or correction. 

What do you guys think? Do you think the market is heading for a correction? If so, how hard will the market be hit?