The broader markets are at an all-time high. The Dow Jones Industrial Average finally cleared 20,000 and just kept on rising. Stocks even shrugged off commentary from the Fed on Tuesday that suggests an interest rate hike is imminent. We’ve now gone nearly eight years without a bear market in U.S. equities.
In short, the bulls are in charge … and that should make investors nervous.
For one, there are plenty of potential catalysts for a correction or even a new bear market. There’s tepid growth in the U.S. and overseas, potential political conflict, and a bull market that’s a bit long in the tooth. And it’s usually when investors gets complacent and/or overconfident that the market reverses.
The bulls might be winning for now — but that usually means the bears are only hibernating.
What’s notable about the post-election optimism is that it has led to big gains in a number of high-risk, high-reward stocks. Should caution return to the market, those stocks that had the biggest moves in the bull market usually are first in line to reverse along with broad market sentiment.
As such, here are seven stocks to sell or short into the ground for profits should the bears attack.