Bull markets end as we all know trees don’t grow to the sky and markets don’t move in just one direction forever.

  1. The Saudi “coup” goes badly and civil war erupts. Fighting disrupts the orderly supply of oil from the largest producer in the world. The price of oil skyrockets to $10o or higher.  Oil stocks do well but everything else suffers.
  2. The rise in oil prices catches manufacturers by surprise and they are forced to pass costs along to all varieties of products and services.  The Fed alarmed by the rise in prices combined with full employment starts raising interest rates faster than anticipated.  This happened in the 70’s as a result of the Arab oil embargo and caused the bear markets of that decade.
  3. Democrats win enough votes in 2018 elections to control the house.  The new Democratic majority now has the votes to impeach Trump.  Trump facing impeachment tries to rally his base threatening war, getting tough on Mexico and China starting trade wars and the economy falters bringing down the stock market.
  4. North Korea situation results in hostilities, including nuclear war.  Market crashes on this as no one knows how contained it will be or the ultimate cost in lives and treasure.
  5. Hard Brexit. The EU and Britain cannot agree on a soft exit and the resulting turmoil ignites a recession in the Euro block. As the world’s economies are so interconnected global slowdown brings down the markets around the world.