How to Survive a 2018 Stock Market Correction

In early February, investors caught a brief glimpse of a 2018 stock market correction when the S&P 500 500 briefly dove more than 10% between Feb. 2 and Feb. 8.

Even though both major market indexes rebounded shortly after that, the stock market pullback reminded investors that we are nine years into this bull market, and it won't last forever.

And now, stocks are quickly dropping again.

The Dow fell over 400 points yesterday (March 1) after U.S. President Donald Trump announced a 20% tariff on steel imports, and it plunged another 300 points today (March 2).

That has investors wondering if another stock market correction is coming.

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With stocks capable of that kind of turmoil, investors want to know how they can protect their money. After all, a 2018 market correction can have a major impact on your overall wealth and your retirement.

That's why right now is the exact time to prepare a "protection plan" in the event of a market correction. With a solid plan, you can actually profit if stocks plunge even more.

And we have two strategies to help you do just that...

Use Gold as a 2018 Stock Market Correction Hedge

The first safeguard strategy is to add gold to your portfolio. Gold is always a standard protection against uncertainty and volatility in the stock market.

Check out how gold performed during the 2008 financial crisis and stock market crash.

The Dow Jones gave up almost 50% of its value from peak to trough. At the same time, the price of gold gained 5%.

Money Morning Chief Investment Strategist Keith Fitz-Gerald recommends keeping 2% to 5% of your total portfolio in gold, to provide you with a hedge against uncertainty.

And while you can always buy physical gold in bars or coins, adding gold exposure is even easier than that.

The best way to gain gold exposure is through the SPDR Gold Trust ETF (NYSE Arca: GLD). As an ETF, it trades just like a stock, so there's no need to worry about shipping gold bars or insuring them against theft or less. Plus, GLD tracks the change in gold price, which means you're getting the same benefits of owning gold without any extra fees.

GLD currently trades at $125 a share, which means you can control more of it than an ounce of gold, which is currently $1,320.

While gold will help add some stability to your portfolio, you'll still want to own stocks with upside potential.

Our second strategy is to buy some of the most resilient, must-have stocks on the market.

The two stocks we're about to show you have double-digit upside this year and have a track record of performing even during market downturns.

Here's how you can profit from owning some of the best stocks during a market correction...

2 Top Stocks to Own During a Market Correction

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The two stocks we're recommending have a track record of outperformance 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 from 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 $210.97 a share and pays a 1.51% dividend yield. Plus, investment banks are giving RTN one-year price targets as high as $265 a share. That's a potential gain of 25%.

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 $217.40 and pays a 1.37% dividend yield. Wall Street analysts are also giving BDX a 12-month price target of $265, a 22% gain from today's prices.

And if you want even more of Keith's recommendations, you're in luck...

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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