Shut-Down Low-Down with Neil Cavuto

When markets are down big, I usually get an invite to be on TV to talk about it. Today I got an invite to be on Fox News with Neil Cavuto. Regardless of how you feel about Fox News, it’s a huge platform to discuss what I think are the important aspects that investors should think about. Plus, I get to explain a big complicated idea simply.

Here are the big points to remember as we enter a time of volatility. First, the only real policy issue in America that affects markets deeply is the trade deal with China or the lack of it. Everything else is noise. Second, housing is soft, and most recessions start with a big blow-up in that market. Well, soft housing isn’t a blow-up and rates are lower today than they were last quarter, which produced weak housing numbers. Third, we already know that China had a bad year. It’s the reason why their markets are down well over 20%. So, volatility should come to no surprise today.

In the end, there are things that are uncertain that we have known about for many months. This gives us the opportunity to buy low and sell high. Considering that the market has rallied for weeks since the Christmas Eve low, it’s not really news that there was a down day coming.