Advisory firms typically tread gently when sounding alarms of potential bear markets. Equity asset managers, of course, generate revenues by charging fees based on the amount of assets that they manage, so encouraging investors to sell stocks can result in a drop in revenues and profits.

Other firms may be apprehensive to call the end of bull market simply out fear that their predictions may be wrong. After all, forecasting market returns is difficult, at best. Optimists currently maintain that the current bull market still has a long runway and they reinforce their arguments with historical observations.

Even though monetary tightening provokes angst among investors, equities have typically rallied when the Federal Reserve increases the fed funds rate. In addition, corporate earnings, which can sustain bull markets, typically don’t weaken until months have passed after the Leading Economic Index hits a peak. With the Index recently hitting record high levels, it appears that the bull market may still have legs. Lower taxes resulting from tax reform could also help sustain the bull market.

Pessimists, on the other hand, argue that a bear gets closer every day as they bull market matures. They add that the Fed could spook investors by overshooting its rate increases and that a potential trade war sparked by President Trump’s tariffs could throw cold water on the global economy. An uptick in inflation could also spell doom for the economy and equities.

Fidelity, in a recent web post, is taking a somewhat middle-of-the-road approach to dealing with the aging bull market.

The firm maintains that we are likely in the middle- to late-phase of the business cycle. Additionally, the S&P 500 has averaged one 20% decline every three years, along with smaller declines during more frequent intervals. When considering the market calm that existed in the years leading up to the late January decline, it’s likely that we are overdue for a correction.

Fidelity is advising clients to take a balanced approach by avoiding completely selling equities. Instead, investors should refrain from making big equity bets and they should assess their asset allocations. Investors should also review their equity holdings to ensure that they are investing in high quality companies rather than companies that are cheaply priced because their industries may be contracting.

The Capital Group Companies, which offers the popular American Funds, is also preparing clients for a bear market, or least for the perception that a bear market may be likely.

In a recent web posting, the firm emphasizes that predicting market performance is difficult, but when considering the overall calm in equities during the past few years, some investors may be concerned that a bear is overdue. With that in mind, advisors should recommend that clients put the equivalent of one to two years of living expenses in liquid assets, such as short-term bonds.

The recommendation is different than the typical strategy of keeping three to six months of living expenses in cash or other liquid assets. The idea is that one to two years of cash can help investors avoid having to sell equities during a bear market to cover living expenses if the market decline lasts more than six months. The higher cash balances can also help clients avoid making knee jerk reactions, such as panic selling if markets decline.

For annuity vendors, concerns over a bear market are a big marketing opportunity. Annuity company Global Atlantic Financial Group is just one of many firms that’s jumping on the opportunity. It has a special website for advisors that discusses how the impact of market declines on clients’ finances can vary dramatically based on individuals’ time horizons prior to retiring or retirement status.

In one scenario, an investor retires in 1995. In another scenario, an investor retires in 2000. Both investors started their retirement with the same amount of assets and withdrew assets at the same rate. However, the first investor, 17 years into retirement, had a much larger net worth because the individual’s retirement started during a bull market, unlike the second individual, who started retirement during a bear market.

For the Global Atlantic Financial Group, the takeaway from the two different scenarios is obvious: annuities are needed to guard against a market downturn.