The markets fell about 10% in October and November. Them seemed to have found a bottom, and things looked to be stabilizing. Then in late December the markets fell even further. Nearly every asset class was affected. I understand that these declines can be worrisome and painful.
THIS IS NOT 2008. In 2008, the economy was suffering a mortgage crisis, falling home prices, a corporate debt crisis, and losing 800,000 per month. In 2018 the economy was generating 200,000-300,000 jobs per month. That is an over a million job a month difference. The economy is not just sound, it is doing very, very well. Corporate earnings are still growing and expected to grow in 2019. The Christmas Shopping season was record setting. Wages are up. Inflation, gasoline, and taxes are low. The economy is fundamentally VERY strong and set to continue to do well.
Why is the market falling? And why so fast?
The market falls faster than perhaps is did in the past due to two reasons: