Good morning.

Stocks are little changed at the moment as investors appear to be shrugging off any major concerns over geopolitical risk having a negative effect on markets and investments.

The Trump administration is claiming Venezuela will turn over up to 50 million barrels of oil to the U.S. (which will be sold at market prices for the benefit of both the U.S. and Venezuela) but this will probably not please China at all, which has recently been receiving 80% of Venezuela’s exports … according to Reuters.

Not only has Venezuela been identified as important to U.S national interests but so has Greenland … but while the White House noted military action is not off the table to annex that country (a statement which terrified allies) … Secretary Rubio (according to The Wall Street Journal) claims this was only rhetoric to bring Denmark to the negotiating table.

I know I’ll get grief from saying this, but in my view, physical threat to get concessions is an interesting strategy that I think I recall seeing in The Godfather, Part 1.

Jobs data came out this morning showing that while the private sector added fewer jobs than anticipated, Heather Long, Chief Economist at Navy Federal Credit Union, called hiring “anemic” and claims it is not only are jobs presently “hard to find” but wage growth is slowing.  It will probably take just a little more data to figure out if her comments indicate a bit of exaggeration as she claimed the situation is worse than at any time since “The Great Recession.”
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There was a global survey conducted by IPSOS and in polling over 23,000 adults in over 30 countries, they found that 67% feel AI will “replace many jobs in my country” in 2026.  We’ll see.

Meanwhile, jobs in department retail stores might already be starting to be affected as Daily Shot shows a sharp drop (in % of purchases) in both big chain department stores and warehouse clubs along with superstores … as consumers continue the shift toward online purchases.

Speaking of deliveries, I actually ordered German food online yesterday.

The potato pancakes and sauerkraut arrived as expected

… but the wurst is yet to come.

Have a great day,

Joseph G. Witthohn, CFA

Have any questions? Please contact info@teamemerald.com

A Look At The News | January 7, 2026 As of 11:59 AM today … December found fewer-than-expected jobs, but the amount should not be enough to cause concern as the economy is still targeting growth … according to Goldman Sachs (FoxBusiness) https://www.foxbusiness.com/economy/private-sector-added-fewer-than-expected-41000-jobs-december-adp-says   Even so, affordability of homes is still a concern … as even though mortgage rates dropped a little, so did demand (CNBC) https://www.cnbc.com/2026/01/07/mortgage-demand-drops-nearly-10percent-to-end-2025.html   … but people are resourceful and starting to seek smaller and more affordable places … which is expected to turn the commercial real estate market on its ear (CNBC) https://www.cnbc.com/2026/01/07/commercial-real-estate-migration.html   Many find having a glass of wine to be quite pleasing … but with 4-5 glasses in each bottle, does the extra need to be either guzzled or discarded if not shared?  Maybe not (FoodandWine) https://www.foodandwine.com/how-long-before-wine-goes-bad-11869811   It hasn’t hit anyone I know (yet) but I am expecting it to … as this season’s flu is already at its highest level in 25 years … and flu season has barely begun (NYPost) https://nypost.com/2026/01/06/health/super-flu-hits-highest-level-in-us-in-25-years/   One of the issues with living longer … especially in inflationary times … is running short on funds.  Elderly homelessness is increasing.  Poor planning, no planning or just circumstances? (NPR) https://www.npr.org/sections/shots-health-news/2026/01/06/nx-s1-5623005/seniors-aging-unhoused-homeless-shelters-mobility   The statements above are supplied for educational purposes only. The statements depict the viewpoints and opinion of the author and are not necessarily the views of Emerald Asset Management or its affiliates. The information described herein is taken from sources which are believed to be reliable, but the accuracy and completeness of such information is not guaranteed by us. Emerald Asset Management PA, LLC | 717-556-8900 | 3175 Oregon Pike, Leola, PA 17540 Want to change how you receive these emails? You can unsubscribe from this list. ———————————————————————————- The statements above are supplied for educational purposes only. The statements depict the viewpoints and opinion of the author and are not necessarily the views of Emerald Asset Management or its affiliates. The information described herein is taken from sources which are believed to be reliable, but the accuracy and completeness of such information is not guaranteed by us.