Baidu.com, Inc. (ADR) (BIDU), Beazer Homes USA, Inc. (BZH): Three Signs That the Bull Market’s Days Are Numbered

3. Formerly hot sectors have taken big hits.
In every bull market, certain industries lead the way higher. When those industries start to turn around, it can be a sign that the overall market will follow suit.

For instance, over the past couple of weeks, many homebuilders have seen their stocks fall substantially. In particular, Hovnanian Enterprises, Inc. (NYSE:HOV) and Beazer Homes USA, Inc. (NYSE:BZH) have reacted negatively even to news last week that home prices had risen by more than 8% year over year. Occasional pessimistic data points, such as new-home sales falling more than expected last month and consumer confidence figures declining, have been enough to make investors question whether there are further gains to be had from stocks that have already soared. You can find similar stories in other hot sectors, such as financials and airline stocks.

Wait and see
After four years of steady and dramatic rises, the stock market is arguably overdue for a correction. But even these signs of a potential end to the bull market don’t mean that such a correction is imminent. What they do tell you, though, is that it’s time to make sure your portfolio is ready to handle whatever comes next — including a substantial downturn that could potentially be right around the corner.

The article 3 Signs That the Bull Market’s Days Are Numbered originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger owns shares of Vanguard Emerging Markets ETF. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Baidu. The Motley Fool owns shares of Baidu.com, Inc. (ADR) (NASDAQ:BIDU).

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