NEW YORK (The Street) -- Investors should cash in their gains as stocks reach new highs because by next year the market -- and the economy -- will turn south, said Ken Moraif, a senior advisor at Money Matters, an investment firm with nearly $2.5 billion in assets under management.
Moraif recommends investors buy anything consumer-related because lower gasoline prices and higher wages will drive consumption, and the market, higher, for now at least.
"It's always the best right before the end, and so this year, I think consumers are going to be strong, they have money in their pockets," said Moraif, the author of a new book called "Buy, Hold and Sell!"
But the bull run will come to an end toward the end of the year, he predicted, and investors should diversify because there will be few winners.
Meanwhile, it's time for investors to start preparing for next year's recession, Moraif said, recommending stop-loss strategies to help investors protect the gains they've made over the last five to seven years.
"We told investors to get out in November 2007 and all of 2008, because we believe you don't just buy and hold, you sell. You get out."