Market Overview

3 Events That Could Trample The Bull Market

3 Events That Could Trample The Bull Market

The current bull market is the longest of its kind, but investors should be on the lookout for three warning signs the end of the run is near, according to Mark Tepper.

The Analyst

Strategic Wealth Partners CEO Mark Tepper discussed about what could trample the bull market during a recent CNBC "Trading Nation" segment.

The Thesis

First on the list of negative events investors should be paying attention to is an inverted yield curve, Tepper said. The yield curve right now is flat and typically inverts 12 months before the start of a recession. From a historical perspective, an inverted yield curve predicted each of the last seven recessions dating back to the late 1960s.

The Leading Economic Index is growing 5 percent year-over-year, but if the measure of global economic movements contracts, a recession is likely to follow suit, the CEO said. 

If the Federal Reserve shows a policy of tightening monetary policy, it could spell trouble for the markets, he said. The Fed appears to be unlikely to start tightening for at least another year, so this concern is unlikely to play out in the near future. 

"All good things have to come to an end," but there is at least one year left in the bull run, Tepper said. For the time being, investors should confidently "ride out the rest of the bull market," in his view. 

Related Links:

Cramer: The Bull Run Survived These 10 Challenges

Is Your Stock Portfolio 'Too Long'?

Posted-In: Bull Run CNBC Mark Tepper Strategic Wealth PartnersFutures Top Stories Markets Media Best of Benzinga


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