This Analyst Says the Bull Market Is Ending

The current bull market is the second-longest in U.S. history, notching its ninth consecutive year of stock market growth since the recovery began in March 2009.

And we're nearing a new, record-long bull market. If stocks don't suffer a 20% downturn from their all-time highs on Jan. 26 before the end of August 2018, a new record will be set.

If we see a 20% decline in stocks from their Jan. 26 high, the definition of a bear market, then a lousy record will be the least of our worries.

Bull market

Now that volatility has returned to the market - the VIX has doubled since the start of the year - investors are wondering if this bull market is finally running out of steam.

The Dow has already sunk nearly 8% since its Jan. 26 peak, and President Trump's trade war with China is threatening to sink it even more.

And the Wall Street analyst who predicted the start of this bull market now says a bear market could be on the way...

Now Isn't the Time to Play Momentum

The analyst is Gluskin Sheff's Chief Economist and Strategist, David Rosenberg.

Speaking to CNBC's "Trading Nation," he warned the current bull market could be on its last legs.

And the brief recovery in March isn't making Rosenberg turn away from a bearish stance. He's adding to it.

Rosenberg told CNBC that the market is in the process of making a double top, a bearish indicator that the market has little room to run higher. He strongly advised that investors avoid playing momentum right now, as new highs won't last, and markets are likely to test their bottom ranges.

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Rosenberg sees similarities between 2008 and the current market. In both cases, stock market highs are followed by investors receiving advice to continue to follow the momentum.

As he points out, this advice surfaces at every market top. Investors are urged to abandon valuation measures and keep following stocks higher. Instead, they need to do the opposite: Pay attention to valuation, and don't follow momentum.

The Feb. 5 plunge could serve as a warning about how quickly the market can reverse itself.

On Feb. 5, 2018, the Dow Jones Industrial Average (DJIA) witnessed its steepest one-day point drop ever when the Dow sank over 1,000 points lower.

And Rosenberg says investors are likely to see more pain than that early February decline.

In fact, Rosenberg says there are two additional reasons he's concerned.

First, rising tensions over trade, spurred by the Trump administration's tariffs on steel and new tariffs on China, could roil markets further.

Second, the U.S. Federal Reserve is committed to hiking interest rests, which could pull liquidity out of the market just as stocks begin to fall.

While Rosenberg is just one analyst - and we don't necessarily agree that a bear market is imminent - we think it's important for our readers to hear about all perspectives.

And if you're unprepared for a serious correction or bear market, don't sweat it. Here's what you can do to protect yourself.

How to Protect Your Money in an Aging Bull Market

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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 Fed 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 $217.75 a share and pays a 1.59% dividend yield.

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 $219.41 and pays a 1.37% dividend yield.

And while you're protecting yourself from a market correction, there might be an even greater danger lurking in the distance...

There Aren't Any "Safe Spaces" to Protect You from the Next Financial Disaster

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If you lost out when the markets crashed in 2008, then you are going to want to see this special presentation.

Because if you don't act soon, the effects on your financial future could be more severe than anything you have ever experienced.

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