It Pays to Prepare for a Stock-Market Reversal – Even With New Bull-Market Highs

In a stunning display of determination (or simple greed), U.S. stock prices are once again at new highs - despite problems in the Middle East, out-of-control government deficits throughout the world, an increasingly inflated China and the looming end to the U.S. Federal Reserve's free-money boondoggle, otherwise known as "QE2." Should you be worried about a stock-market reversal? I know that I am. But here's the thing: While there's no question that a stock-market breakdown could derail the best of investing intentions, it doesn't have to derail your financial future. More to the point, if you understand when stock-market "turning points" are likely to occur, you can establish positions or trades ahead of time that will yield profits when those expected transitions actually come to pass.