Will the Stock Market Crash in June 2018?

Volatility has returned to the stock market this year, and as stocks remain flat on the year, investors are concerned about a stock market crash in June 2018.

While no one can predict a stock market crash, we are seeing some bearish signals that investors ought to keep an eye on.

You Must Act Now: America is headed for an economic disaster bigger than anything since the Great Depression. If you lost out when the markets crashed in 2008, then you are going to want to see this special presentation...

The Dow soared 25% higher last year, but it's returned a meager 1.68% so far in 2018. That could be a troubling sign as the second-longest bull market seems to run out of steam.

But that's not what we're worried about.

There are two bigger reasons we could see a stock market crash in 2018. And while we don't think it's likely, we still want to make sure our readers are protecting their money...

What Could Create a Stock Market Crash in June 2018

The first possible catalyst behind a 2018 stock market crash is soaring stock valuations.

The Shiller P/E ratio, which measures the value of the market, has soared to 32.25, 91% above its historical average. The only time the Shiller P/E ratio has been higher was before the 2000 market crash.

That means buying a stock today costs more money in terms of the companies underlying earnings than at any other point in history, including before the 1929 stock market crash.

And we have the U.S. Federal Reserve to thank.

When the last financial crisis hit, interest rates were well over 5%. The Fed stimulated the economy by slashing rates in 2008 to just 0.25%, the lowest in history. This action was supposed to stimulate economic spending by encouraging borrowing.

But businesses used a chunk of the money to buy stocks.

Between 2009 and 2016, public firms repurchased $1.9 trillion worth of their own stock using $2.1 trillion in cheap borrowed funds.

That helped boost share prices across the board, helping lead to an absurd, 250% growth rate since March 2009.

That's ending soon...

The second catalyst is the Fed's aggressive interest rate policy.

The Fed has hiked rates six times since December 2015, including once already in 2018.

And the next rate hike is almost certainly coming on June 14, which will push rates to 2%, their highest level since 2008.

Now, we aren't predicting that will kick off the next stock market crash. But it's definitely something investors need to be paying attention to.

Plus, investors can protect their money from a stock market crash without sacrificing potential profits.

Take a look at our strategy...

Our Stock Market Protection Plan to Help You Profit No Matter What

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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 $202.52 a share and pays a 1.71% 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 $224.82 and pays a 1.33% dividend yield.

The Scary Details the Fed Didn't Reveal

On Feb. 27, Chair Jerome Powell revealed the Fed would raise interest rates.

What he didn't say is that those rate hikes could send the U.S. economy into a tailspin... and very well might lead to the greatest economic collapse since the Great Depression.

If you are not willing to lose everything in another market crash, then click here.

Because it's possible to protect yourself from the coming economic disaster - but you have to act now.

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