The nearly decade-long bull market has sent stocks to new record high after record high, with the Dow jumping from under 21,000 to nearly 27,000 over the last year alone.
But after the Dow dove nearly 10% in the first five days of February, investors are on high alert for another downturn and looking for a 2018 stock market crash warning sign.
Unfortunately, there are no accurate stock market crash warning signs.
Just look at the CBOE Volatility Index (VIX), an index that measures stock market volatility based on the options trades placed on the S&P 500.
Last summer, market watchers were claiming that the historically low levels of volatility on the VIX were a sign of a stock market crash coming.
The VIX steadily declined last year, falling to a low below 10 by July. The period of low and declining volatility led some observers to caution that it had nowhere to go but up, and with stocks trading at record highs, a market crash could be right around the corner.
They were almost right...
The VIX spiked at the beginning of February, surging 236% from 11.08 on Jan. 26 to 37.32 by Feb. 5, its highest close in more than five years.
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And while stocks saw declines, the pullback was far from a crash.
Just over a week later, stocks are back on their way to reclaiming their January values.
But the brief pullback didn't stop investors from worrying about their portfolios. That's why instead of looking for another market crash warning sign, investors can use the opportunity to prepare.
The good news is, you don't need to pull your money out of stocks or hide it under a mattress. Investors can start by avoiding complicated financial instruments, like the infamous XIV, which ended up wiping out millions of investors' dollars when volatility surged.
Instead, you can protect your money from a market crash by investing in excellent, must-have companies. These won't make you immune to the ups and downs of the market, but these resilient firms are always going to bounce back, and they'll endure the volatility better than more speculative stocks.
Here are two of our favorite stocks to own to protect your portfolio...
The Best Stocks to Protect Your Money and Profit
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We're recommending two stocks that have a track record of performing even as the broader market declines. Both of these stocks brought positive returns during the tech crash in 2000, even as the overall markets fell more than 10%.
While there's no guarantee these stocks will be immune to the next correction or pullback, they are some of the best companies in the most in-demand industries.
Money Morning Chief Investment Strategist Keith Fitz-Gerald thinks investors should hold on to stocks in the "Unstoppable Trends." The trick to making huge profits is to find "must-have" companies that fall into these six Unstoppable Trends: medicine, technology, demographics, scarcity and allocation, energy, and war, terrorism, and ugliness (also known as "defense"). The Unstoppable Trends are backed by trillions of dollars that Washington cannot derail, the Federal Reserve cannot meddle with, and Wall Street cannot hijack.
By owning well-run companies in these Unstoppable Trends, you'll own resilient stocks that will charge out of any market downturn, leaving behind anyone who sold off stocks for other assets. And if the market doesn't correct, these stocks are still going up.
That's why we're bringing you two of our favorite stocks from the Unstoppable Trends.
Raytheon Co. (NYSE: RTN) is our play for the trend of war, terrorism, and ugliness.
Raytheon is a leader in the defense industry, with billions in contracts with the U.S. government and other countries across the world. That means if the market falls, Raytheon is going to continue to excel over the long term.
Raytheon has billion-dollar contracts with the U.S. government, but it also has a diverse customer base. International customers make up just under half of its business. That means even if a few countries cut defense spending during an economic downturn, RTN still has plenty of other customers to help it weather the storm.
But RTN's real allure as an Unstoppable Trend pick is the fact that war is a reality of the world. For instance, as tensions rise abroad, the United States is more likely to need more weapons and equipment. When the United States launched a missile strike on a Syrian airbase on April 7, Raytheon's stock jumped more than 2%, since its missiles were used.
RTN currently trades at $217.62 a share and pays a 1.47% dividend yield. RTN is up 15.89% this year, even with the pullback last week.
Becton, Dickinson and Co. (NYSE: BDX) is an example of a play in the Unstoppable Trend of demographics.
BDX is a healthcare company specializing in one-time use medical products utilized in hospitals and long-term care facilities. That means as populations age, more people will need this type of medical care, and BDX will be in even higher demand. People will need healthcare whether the market falls or not.
But BDX is also an exceptionally well-managed company. It has a 10.54% profit margin and maintains a 1.58% dividend yield, even after a $12.2 billion takeover of CareFusion two years ago. That means the company's capital management is sustainable and will easily survive a market downturn. And that's good news for its shareholders during a stock market crash.
BDX trades at $222.22 and pays a 1.35% dividend yield. BDX is up 4% on the year despite the pullback, and after falling from nearly $250, it now is an excellent buying opportunity.
And if you're looking for even more profit plays, we've got you covered...
20 Triple-Digit Winners in 2017 (This Year Could Be Even Better)
Keith Fitz-Gerald's Money Map Report subscribers who followed along with his recommendations took down 20 triple-digit winners last year - including a 201.68% return and 132.35% gain that closed out in the same week.
Two days into 2018, they closed another triple-digit winner worth 276.92%.
Each week, Keith shows everyday Americans how to tap into the world's biggest high-profit trends, ahead of the crowd.
There's nothing complicated or overly risky - and no guesswork involved.
Right now, he's looking at another double-your-money opportunity, and there's still time to find out how to subscribe and access all of Keith's recommendations by clicking here now...
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