Joseph G. Witthohn, CFA
VP of Product Development Emerald Asset Management

Good morning.

There is, so far, little movement in the markets today … and one question is whether or not we are being lulled into complacency.

What do I mean by this?

Well, I ran some numbers this morning on the Dow and last year we had a return of greater than 1% … in either direction … 51 times … or, in other words, a little over 20% of all “trading days.” The last time we had a move that large was back in early December and – due to the present market height – a 1% move would be over 200 points. We do, of course, expect to see a move of this magnitude – in either direction – sometime in the near future … but what we must all keep in mind is to ignore the “shouting of strategists” that will follow … and recognize that moves of this nature are rather commonplace … and we should expect them.

Yes, we have been on a run … but even though President Trump tweeted out that we just had the “longest winning streak in decades” … it is actually the longest run since September 2013.

I guess Washington has a different definition of the word “decade.”

Meanwhile the economy appears to be on good footing, although apparent “growing pains” as the new administration takes shape could erode confidence, in my view, and market volatility could suddenly reappear.

Normally I try to close with some cute story but I really had trouble finding things today in the news … as all my typical sources seemed to focus on was the circus going on right now in Washington. I really long for the good old days … and look forward to the day when pages are once again filled with silly, stupid mindless gossip that doesn’t affect our everyday lives so much.

I never thought I would ever say this but …

… I kind of miss the Kardashians.

Have a great day.

Joseph G. Witthohn, CFA
Vice President
Emerald Asset Management
610 Freedom Business Center Drive
King of Prussia, PA 19406
(610) 337-9230 ext. 6

… as of 10:45 AM today …

Quick Look at the News


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