Good morning.

Markets are bouncing around today and have made up almost all of the ground that was lost early in the week, following the most recent tariff threats (which have now been pulled back).  But while traders are presently breathing a sigh of relief, many have cell phones always within reach … understanding that one “truth tweet” can take away the market’s oxygen in an instant.

While most of the commentary surrounding Davos this week focused on statements made (and unmade) by President Trump, there were employment warnings put out by a number of leaders forecasting the rapidly approaching effects of Artificial Intelligence on jobs.

This is actually pretty severe … and warning flags were waved by some very smart people.

Larry Fink, CEO of Blackrock and Jamie Dimon, of JP Morgan both expressed concern … while Jamie did not rule out the possibility of civil unrest if unemployment soared as a result … and asked if governments are prepared.  The head of the IMF equated the possible effect as a “tsunami” … for which few are prepared.  And the scariest thing about the statements?  Claims seem to be this negative unemployment happening is not years down the road but could take place within the next 12 months.

Of course, one comment made this week came from Elon Musk. as Tesla’s basic autopilot has been discontinued while full self-driving remains (at a higher cost, of course).  But what is most intriguing here is Musk’s view that soon we will be able to drive these cars while reading a book … or taking a nap … although we recall hearing this song many times before.

Meanwhile many are preparing for nasty weather this weekend anticipating a storm which has resulted in 230 million Americans finding themselves under a “storm watch” … and early indications are that it promises to be a doozy.

These types of storms are always scary … especially for those who find the need to get in their cars.

The first major snowfall has the tendency to turn rational adults into either NASCAR drivers or monks …

… with both overconfidence and loss aversion on full display at 25 MPH.

Have a great day,

Joseph G. Witthohn, CFA

Have any questions? Please contact info@teamemerald.com

A Look At The News | January 23, 2026 As of 11:48 AM today … While there is great fear over social security running out of money, there is little need to worry … but odds are increasing that there will be a benefit reduction. Ouch (CNBC) https://www.cnbc.com/2026/01/23/will-social-security-run-out-is-the-wrong-question-economist-says.html   One point of contention … and much discussion … at Davos had to do with energy, as fossil fuel representatives were there in full force … facing a world chipping away (Time) https://time.com/7353478/davos-climate-leadership-end-fossil-fuel-era/   … as the EU and China advance clean energy initiatives … but there is still a long way to go as fossil fuels still have a commanding lead (EuroNews) https://www.euronews.com/green/2026/01/22/solar-and-wind-overtake-fossil-fuels-in-the-eu-for-the-first-time-can-the-power-grid-keep-   Just when … in the Northeast … we started to think that harsh winters were gone for good … and arctic blast comes our way though, fortunately, we have a little time to prepare (SouthernLiving) https://www.southernliving.com/things-plumbers-say-you-should-do-before-freeze-11890190   … but expected snow is the focus right now … along with layers of ice … and travel may be impossible.  For those staying in, here is a guide for things to keep on hand (TomsGuide) https://www.tomsguide.com/home/outdoors/pre-storm-checklist-5-things-you-should-keep-on-hand-when-the-snow-hits   Okay … we’ve heard the promise before on self-driving-cars and now we are told we’ll soon be able to take a nap while our car takes us places.  I’ll believe it when I see it (FinViz) https://finviz.com/news/284898/elon-musk-says-fsds-99month-subscription-fee-will-rise-as-tesla-scraps-autopilot-in-us-you-can-be-on-your-phone 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.