December was another bad month in a string of bad months, with U.S. markets down about 10 percent and international markets faring only a bit better, down 5 percent to 6 percent. A combination of bad news, from a government shutdown, to the ongoing trade war, to the Fed's decision to raise rates, was enough to shake investor confidence just in time for the holidays. Still, the fundamentals continue to look strong. Has the damage been done? Stay tuned to my Market Thoughts video to find out.

Despite the Christmas holiday, last week brought some important economic news. With another holiday on the horizon, this week won’t be as busy, but there are still a couple of economic reports worth paying attention to.

As we approach the new year, hiring is strong and both business and consumer confidence remain high. With these solid fundamentals, the financial markets are likely to respond. Earnings should go up, so we should expect to see rising stock prices as well.

Are we still experiencing normal market volatility? I discussed this and more on CNBC's Power Lunch today. 

Last week was a busy one on the economic front, with several reports on housing, a look at durable goods demand, and the consumer income and spending report. This week is a short one, due to the Christmas holiday, but there are a couple of economic reports worth paying attention to.

Of course, here I am riffing on the famous headline published after President Ford refused to bail out New York City (see below). Yesterday, there is no doubt that markets were expecting a bailout from the Fed—and threw a tantrum when they didn’t get it.

It’s that moment you’ve all been waiting for—the 2018 Bubble of the Year Award (“the Bubby”)! This long-standing tradition (as of last year) brings together the strongest and weakest investment stories for a no-holds-barred match to see which stands out as the bubble of the year. This year, we have several strong contestants.

Several weeks ago, an advisor asked me to take a deep look at debt in the economy. I thought this was a great idea, both timely and important. In fact, I meant to get to it sooner but, well, things happened. When I did start to investigate, I realized that “debt” was many different topics, deserving of several posts. So, here we are, beginning a series that will resume in January. Fortunately, the news is not actually all that bad in most areas. Even in the ones where it is very bad (e.g., U.S. government borrowing), there are reasons to, if not be cheerful, than at least not to despair.

Last week was a busy one on the economic front, starting with prices. This week will also be active, with several reports on housing, a look at durable goods demand, and the consumer income and spending report.

Market risks come in three flavors: recession risk, economic shock risk, and risks within the market itself. So, what do these risks look like for December? Let’s take a closer look at the numbers.