Market panic: December 2018 edition.

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 his 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 had a recession in ten years doesn’t make it any more likely.

It’s okay to feel nervous and it’s 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, and enjoy your family.