Good morning. Stocks are having a tough go of it this morning, but a slight pullback could be expected following three consecutive days of gains … especially with the topic of tariffs still on everyone’s mind. On a positive note, Reuters is reporting that Producer Prices fell in April, but margins are down, and Bloomberg suggests companies “are absorbing some of the hit of higher tariffs.” This might not last for long, however, as Wal-Mart warns it will soon need to raise prices … claiming they can only absorb so much … which would lead some to painfully accept that it is not the “tariffed country” paying the extra cost … but, rather, the producer or the consumer – once added costs are passed along. Even as we see indications of improvement (if market movement is how we measure things) Jamie Dimon points out recession risk still remains … and in a newsletter this morning, Kyla Scanlon gives the interesting opinion that all we have seen … with the tariff back-and-forth … has been nothing but “kayfabe” … which is “professional wrestling’s term for staged reality to work the crowd,” with all eyes glued to the (fixed) fight. Kyla claims political careers have advanced, with both U.S. and Chinese leaders claiming victory and certain corporate interests benefitted through special deals. Meanwhile, in the end, it might be a bit punishing for the average American family … as Yale Budget Lab insists this is where the higher prices will land (to the tune of $2300 for each household … annually). Meanwhile, there are some affordability concerns even without higher costs as credit card delinquencies (over 90 days late) jumped by the most in over 10 years and student loan delinquencies are also problematic … but the interesting thing here is that the sharpest rise (according to Daily Shot) is for those in the 50-and-above age group! While you might think young adults (recent grads) have the highest student loan debt, data shows the most debt (per borrower) is “Gen X” (age 44-59), with average debt around $44,000. Meanwhile, “Boomers” in the 60-78 age range owe around $42,000 on average. And figure that the average social security payment is just over $1800 … well … good luck with retirement. Meanwhile, I don’t know what to do. Should I remain heavily invested or just keep a bunch of aspirin (and alcohol) handy to ride out any volatility? I was going to get a part-time job on weekends to learn about farming … but realize it doesn’t fit my personality. It seems I don’t work so well with udders. Have a great day, Joseph G. Witthohn, CFA Have any questions? Please contact info@teamemerald.com
|
Call Us: +1 (800) 722-4123 
Back