Since hitting its all-time high in September, the Dow is down 2.45%. Despite a few brief rallies this year, stocks can't seem to catch fire the way they did back in 2017. That could be a sign that the bull market is winding down.
And stocks aren't the only source for pessimism.
You see, the bond market is sending a clear signal that a recession is on its way.
But that doesn't mean you need to leave profits on the table.
In fact, we have just the strategy to help you reap gains if the next market crash hits...
The Bond Market Is Flashing Red - Here's How to Make a Killing
Bonds are normally the sleepy part of investing. They aren't nearly as exciting - or potentially profitable - as the hottest IPO or booming tech stocks. They're mostly safe-haven assets offering investors a little peace of mind compared to the more volatile stock market.
But that also means they're a critical bellwether for the American economy. And they've been sending clear warning signals about the U.S. economy over the last month.
You see, bond yields - what investors get in return for buying bonds - have been falling for the last few months.
Normally, fluctuations in bond yields are small news on Wall Street. However, there's more than meets the eye this time.
Long-term bond yields are plummeting for the first time in at least a decade.
In fact, long-term bond yields are now offering a smaller return than short-term bond yields, also known as a yield curve inversion. Right now, the yield on a six-month or one-year bond is higher than on a 10-year bond. And that's bad news for investors.
In fact, over the last 60 years, an inversion in the nation's bond yields has preceded every recession the nation has gone through.
YOU KNOW IT IN YOUR GUT: Look at how things are going. Financial turmoil is coming just around the corner, maybe just a few months away. Click here...
The reason behind this precipitous drop is tough to identify, but there are plenty of candidates.
International anxiety over Brexit, the trade war between the United States and China, and potential conflict with Iran are rattling markets. Plus, it's been over a decade since the last recession ended, and we've been riding a record-long bull market ever since.
And that's shaking the nation's Federal Reserve.
Over the last few weeks, authorities at the reserve have hinted at a persistent anxiety over the state of the global economy, pointing to the trade war between the United States and China as a key influence on the future of the nation's markets.
That even has the Fed considering an interest rate cut, despite a plan to hike rates last year. With rates just above 2%, it's a sign the Fed is growing very uncertain about the ability of the economy to handle higher rates right now.
In short, an interest rate cut in 2019 would mean the Federal Reserve thinks the nation is on the brink of recession.
That's why the bond market's recent signals are a clear sign that savvy investors should be prepping for the worst.
However, you don't have to take on the worst of it when the recession comes.
In fact, your portfolio could thrive when markets turn south...
Here's How to Make a Killing While Markets Tank
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For most investors, a market tailspin puts the nail in the coffin for their returns.
But that doesn't have to be the case. In fact, you can make a killing off a market downturn - as long as you're well-positioned.
There are two key ways to do this.
First, you can short stocks.
This strategy can yield huge returns when markets go belly-up - as long as you know how to do it right.
When you short a stock, you essentially borrow the stock from a broker with the intention of buying it at a lower price later. You'll make money if the price drops, but you'll lose if shares climb.
But shorting stocks comes with infinite risk. Stocks can theoretically climb exponentially, which means you're on the hook for the difference, wherever the stock ends up.
Second, you can invest in inverse ETFs that bet against the market. These ETFs rise if the market falls and sink if the market grows.
And since you're not actually shorting a stock, there's less risk involved.
There are two ETFs that are perfect for this play. One is the ProShares Short QQQ (NYSEArca: PSQ), which tracks the inverse of the Nasdaq Composite. That means when the Nasdaq drops, it will go up and generate a spectacular return for investors.
Our other pick is the ProShares Ultrashort S&P 500 ETF (NYSEAcra: SDS), which is even more aggressive. It's leveraged, which means it will create twice the returns as PSQ.
While these are less risky than outright shorting stocks, they aren't without risk. If the market climbs, these will plunge, especially the leveraged SDS. You'll want to sell these the moment a rally begins. But if you're anticipating the worst to happen, these will offer a nice payday as the next bear market kicks in.
Your Financial Future Is at Stake (Are You Prepared?)
If you're like most Americans, you've felt a sense of market turmoil ahead. We could be in for another white-knuckle ride... a "Great Reckoning," if you will.
The vast majority of folks don't see this coming, and those few who do are not preparing properly... nor profitably.
So ask yourself, right now: Are you where you want to be financially?
If the answer is yes, that's great.
If the answer is no, then understand that you are not alone - and you need to click here now...