As I do every month, it’s time to take a look back at what happened in the previous one and what it could mean going forward. We have a lot to cover.

We closed yesterday’s post with the observation that although current conditions remain good on the economic front, there may be clouds on the horizon. As such, it could be time to start thinking about a pending recession. Today, I want to take a deeper dive into that. But let’s start with why things are still good.

This morning, the major headline was the downward revision in Apple’s revenue projection—the first time this has happened in well over a decade—on lower sales in China. The reaction to this news was apocalyptic, with markets around the world selling off. But why on earth are slower cell phone sales—from only one company—such a big deal? And do these events mean the downturn will continue to get worse?

Brad here. Today, we have another detailed look from one of our great investment analysts, Nicholas Follett. Just as with Anu’s take on emerging markets yesterday, Nick provides an in-depth discussion of one of the most popular asset classes out there—including why you might be interested and what you need to watch out for. He goes into a bit more detail than we normally do here, but consider this an example of what really goes on at Commonwealth as we dig deep for our clients and investors. Enjoy!

Brad here. As part of my Next World series on this blog, I have been discussing the themes and implications with Commonwealth analysts to try to determine what it will mean, over time, for how we invest. Anu Gaggar, our international analyst, put together this piece, which I think is worth sharing. Take it away, Anu!

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.

Both October and November were roller-coaster months. October took us down, and November took us further down only to bounce and finish slightly up. Now, as we move to the end of the year, we are seeing more downward movement, although there are signs that may be passing. As investors, we should probably be checking for whiplash, as this has been a wilder ride than we have seen in years.

We closed the last post in this series with the observation that, even if the U.S. “won” the trade war, there would be collateral damage—both here and throughout the world. That turned out to be a timely point, as we have seen in the financial markets over the past week.