Long time readers know that I preach the importance of individual stock selection. The market can be falling apart but as long as you own solid companies your investments will perform extremely well over the long run. Another way of putting it...It's a market of stocks, not a stock market.

Having said that, it is incredibly important to have a clear view of the macro environment...how is the overall economy (both in the US and globally) doing and how is it expected to do in the months to come? So...lets start there. It is vital that you understand this subject and where we are headed over the next 1-3-5...and maybe even 8- 10 years.

Long term, I am very concerned about the health of both the US and global economies. Sure, China has held up incredibly well, but outside of this still communist country and maybe Brazil and Australia, there aren't many bright spots to be found around the world. And, once you dig a little deeper into China you will discover that if it were not for their...