My dad is 88 years old; my mom is 86. They’re both great-grandparents and they still work twice a week as paid researchers at the U.S. National Archives. They exude energy and good cheer.

Which brings me to this aging bull stock market. By historical standards, the decade-long bull market is ancient and should be on its last legs. But as my parents demonstrate, you’re only as old as you feel. The bull still shows plenty of verve.

The S&P 500 for the first time exceeded 3,000 in July 2019, an all-time high. On Tuesday, the index closed just shy of that historic level and it’s now up four-fold from its bear market low in March 2009. Year to date, the benchmark SPDR S&P 500 ETF (SPY) has generated a total return of 21.7%.

To be sure, the three main U.S. stock indices closed modestly lower yesterday, in choppy trading. Weaker-than-expected earnings weighed on Dow Jones Industrial Average components McDonald’s (NYSE: MCD) and Travelers (NYSE: TRV). Further setbacks in achieving resolution of the Brexit debacle also soured investor moods.

After the closing bell yesterday, giant chipmaker Texas Instruments (NYSE: TXN) stunned Wall Street with dismal earnings, revenue and guidance. The entire semiconductor sector is likely to take it on the chin.

In pre-market futures trading Wednesday, the three U.S. indices were set to open in the red. Investor concerns about the trade war and global economy were heightened before the opening bell today by disappointing third-quarter operating results from construction machinery giant Caterpillar (NYSE: CAT) and aerospace leader Boeing (NYSE: BA), both of which lagged estimates on the top and bottom lines.

But despite hiccups along the way, the bull market is intact. By mid-day Wednesday, investors had shrugged off earnings concerns and the three indices were in the green. The upward trajectory of stocks has been fueled by economic expansion, falling unemployment, low interest rates, a dovish pivot by the Federal Reserve, and the unleashing of “animal spirits” from governmental de-regulation. It’s been a roller-coaster ride (especially in the fourth quarter of 2018) but the overall movement of stocks has been positive.

Third-quarter 2019 earnings results so far have been mixed. As we just witnessed with the three bellwethers Texas Instruments, Caterpillar and Boeing, slowing earnings growth has become a concern. But to date and on average, Q3 corporate report cards are better-than-feared.

Keeping investors buoyant this week has been renewed optimism over the trade war. President Trump asserted Monday that work on a trade deal with China is “coming along very well.”

But words are cheap, whether they emanate from Washington or Beijing. I don’t trust official assurances concerning the U.S.-China tariff battle. My view is that trade tensions won’t end before the 2020 election. But I do trust the hard data, especially on earnings. Operating results for Q3 don’t present an existential threat to the bull market…yet.

Let’s spotlight industrial products, a sector especially vulnerable to trade war. Although overall third-quarter earnings are expected to come in negative, the industrial products sector has gotten off to a healthy start. Of the 3.7% of the industry companies that have reported so far, the sector has enjoyed a year-over-year improvement in earnings of 17.3%.

The industrial sector’s performance so far is counter-intuitive, in the face of stumbling factory activity around the world and headwinds such as tariffs. We’ll see if Q3 earnings season has further positive surprises ahead or whether pessimistic expectations eventually come to pass. According to the latest estimates from the research firm FactSet, the S&P 500’s third-quarter earnings are on track for a year-over-year decline of 4.7%.

The wavering “wealth effect”…

The domestic economic picture remains mixed, too. Unemployment is at a 50-year low and the Federal Reserve is accommodative. Wall Street expects further monetary loosening when the Federal Open Market Committee, the Fed’s policy-making arm, meets October 29-30. But business investment and consumer spending are contracting. We got further troubling news yesterday on the housing front.

The National Association of Realtors reported on Tuesday that existing home sales fell 2.2% to a seasonally adjusted annual rate of 5.38 million units in September, reversing two consecutive months of increases. The consensus estimate called for a smaller decline of 0.7% (see chart).

All four regions of the U.S. experienced a sharp drop-off in sales last month. The housing market grapples with a general lack of supply, as well as a shrinking inventory of cheaper homes that younger buyers can afford.

A home is still the biggest asset of most Americans and remains integral to consumer confidence. When the real estate market prospers and unemployment is low, people feel wealthier. Instrumental in generating a “wealth effect” among Americans has been the steady rise in home prices since their collapse during the Great Recession of 2008-2009. But the wealth effect has diminished in recent months.

The cooling in September of the housing market is making investors nervous, because of the potential ripple effect throughout the economy and financial markets.

Moves to make now…

Looming risks in the U.S. and overseas call for investor caution. More than ever, you should stick to high-quality stocks that are in growth mode but boast inherent strengths that should hold them in good stead if the market stumbles.

Companies involved in the roll-out of 5G wireless technology fit this description. With its super-fast bandwidth, 5G (“fifth generation”) will exponentially improve on existing 4G networks and pave the way for the next wave of Internet-connected devices. For details on our 5G investment recommendations, read our new report.

Another sector that makes sense in a slowing economy is consumer staples. Sure, this sector lacks the sex appeal of high-tech. But as economic cycles come and go, people always need certain essentials such as household goods, food, clothing, toiletries, etc.

The prospect of a recession next year is growing more likely. Now’s a good time to rotate toward the shares of multinational giants that manufacture and market the familiar brand names you find on the shelves of your local grocery store or pharmacy. The blue-chip leaders in the sector have recently undergone streamlining and cost-cutting, which positions them for higher profitability and share price appreciation.

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To be sure, the bull market is getting long in the tooth. The average age of a bull market is 4.7 years. This bull run is more than 10 years long. Recent weak economic numbers have brought bearish analysts out of hibernation. How long before we get a correction?

Hard to say, of course. But remember that bull markets don’t die of old age. They end when stocks run out of buyers. That hasn’t happened yet.

John Persinos is the managing editor of Investing Daily. He’s also editor-in-chief of Marijuana Investing Daily. You can reach him at: mailbag@investingdaily.com.