December has been a bad month for the markets worldwide. This bull market we are in is being shaken and people are worried. I’ve had a few panic calls from clients, but even if you didn’t pick up the phone I can sense you are nervous.
Here are the facts:
- We have low unemployment
- We have low inflation
- We have low interest rates
- We have a growing economy.
Here are the worries:
- Trade war with China
- Looming recession
- Rising interest rates
- Government shutdown
- Mueller Investigation
- President Trump putting foot in his mouth
- Border security
- Terrorist attacks
- and finally (for my vegetarian clients) … romaine lettuce contamination.
If you concentrate on the worries blasted all over the news, you might be a little freaked out.
But if you turned off the news, you’d realize:
- You have a job
- You probably earned more money this year
- Your company is hiring
- Your mortgage rate is low
- Your home has appreciated in value
- and you’re generally happy.
Why is everyone so worried? Why do people think a recession is looming? I don’t have that answer, but just because we haven’t a recession in ten years doesn’t make it any more likely.
It’s okay to feel nervous and its okay to ask your advisor what’s going on with your accounts, but making a change because of non-quantifiable worries vs. quantifiable facts is likely going to be a mistake.
I feel this market is massively oversold and is now trading at a lower valuation than its 65 year average. International and emerging markets are even more disproportionately undervalued in my opinion.
I have the only store in the world where when my inventory goes on sale no one wants to buy … everyone wants to wait for full price to come back!
Take care, have a great Christmas, turn off the news, enjoy your family.