Video: Why Investors Should Prepare for a Correction

We’ve all been through this drill before.

As if living through the effects of the 2007-2008 financial crisis and the Great Recession wasn’t enough, investors continue to sit by and watch as officials in Washington wrangle over the question of how to get the U.S. government’s spending problem under control.

If there’s any lesson the whole “fiscal cliff” fiasco taught us, it’s that our leaders in Washington have absolutely no problem with dragging out negotiations while bringing financial markets to the brink of disaster.

That’s why, as we approach the March 1 deadline for the “sequester” — a series of across-the-board cuts to the U.S. government’s discretionary budget put in place in order to force Washington’s hand — investors should expect more of the same.

“We’ve seen this once or twice pretty much every year for the past three years. People get very optimistic about U.S. growth and then some sort of a shock happens that causes a growth scare and each time it catalyzed into a 5-10% correction in the S&P 500… And I expect exactly the same thing this time around,” said Elliott Gue, Chief Strategist for Top 10 Stocks and High-Yield International on CNBC Asia Thursday evening.

“I actually think it’s one of a number of things that’s going to represent a bit of a headwind for the U.S. market going forward.” said Elliott.

You can watch Elliott’s full interview here.

[Note: Companies are seeing these same problems as well… The mounting debt crisis in the United States and Europe… gridlock on Capitol Hill… and a see-sawing stock market that has gone virtually nowhere. Yet in Elliott Gue’s latest report, he introduces readers to what he calls “The Dividend Vault” as a way to begin collecting hundreds… thousands… perhaps even tens of thousands of dollars a year for as long as you need or want it. To learn more, visit this link.]