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Good morning:.

It was not the greatest morning for me as I greeted my daily habit of yearning for coffee the second I opened my eyes.

The procedure followed was normal … putting the Keurig pod in, setting the temperature, size and strength … and walking out of the room to grab a couple of items to read as I prepared for the start of the day.  The only problem?  I forgot to put a cup in the Keurig … and ended up having to test out just how well the Bounty “quicker picker upper” paper towels did their job amid what was an aroma-filled mess.

My day quickly improved as I pored over the news of the day … as the situation in Iran seems to have calmed down enough to be knocked out of the headlines … and investors celebrated by driving both the Dow and S&P to new, record, highs.

One person not smiling this morning, however, just has to be Kevin Warsh … the new Chair of the Fed … as there was a disappointing employment number (ADP: Private sector) … coming in lower than anticipated … while ADP reports wage growth for July held steady at 4.4%, but job-changers found their own increase to be 7%. The Fed has two main worries …wanting steady employment and stable price increases (without their own boundaries) … and, for the moment at least, appears to be battling both … as rising wages tend to lead to greater inflation.

CME FedWatch Tool, by the way, is putting the quarter-point rate hike probability for the next meeting (in September) at 57% and the hope of a cut has apparently disappeared.

I know I write a lot about social security … as I remain of the opinion the future insolvency is not talked about enough by the people we put in charge … but other than mismanagement, one of the biggest problems has been the younger generations are just not having enough children.

In this regard the last article posted today really hit home.

I am old enough to remember a time when the typical path would be to graduate from school, get a job (of any sort), move out on your own and then … in due course … start a family.   But things have changed … pretty quickly … and I found it shocking to read 25% of kids (if I can call them kids) age 40 have never married.  And, by the way, the article states this was in 2021 so I am sure it is even higher now.  What was it in 1980?  6%.  This is quite a change.

Sure, being single and somewhat care-free is fun … the responsibilities are less … and having to care for others … and make concessions for their habits … is a burden at times.  But the numbers do concern me, and I hope this reverses and families again … having big families … somehow once again becomes popular.

Heaven knows … we need it …

… the social security system needs it

… and time is running short to make a change.

Have a great day,

Joseph G. Witthohn, CFA

Have any questions? Please contact info@teamemerald.com

New and want to subscribe to Wit & Wisdom? Subscribe here   A Look At The News | August 5, 2026   As of 11:51 AM today … Private sector employment in July was less than projections … showing a slowdown … making the Fed’s work all the more challenging … as wages jumped for job-hoppers (Bloomingbit) https://en.bloomingbit.io/feed/news/117741   The social security clock is ticking … and each passing month of government inaction makes the mountain harder to climb.  Raising the threshold appears too logical to go anywhere (Newsweek) https://www.newsweek.com/social-security-plan-to-boost-benefits-by-2400-floated-by-bernie-sanders-12284129   Mortgage rates continue upward … making dreams of home ownership quite cloudy … which is especially bothersome as talk is the next rate move is an increase (CNBC) https://www.cnbc.com/2026/08/05/mortgage-rates-hit-their-highest-level-in-over-a-year.html   … but young adults looking for housing are getting creative … and living in close proximity to those elderly and retired, does seem to have its benefits (MoneyWise) https://moneywise.com/real-estate/gen-z-students-retirement-communities-cheap-rent   We now have a lot of machines and programs doing our thinking for us … but is this actually making us dumber? (ScienceAlert) https://www.sciencealert.com/are-americans-actually-getting-dumber-heres-what-we-know-about-the-reverse-flynn-effect   Years ago, many would graduate and shortly after set a route to start a family.   Still being single years later is becoming the norm.  Are our youth giving up on marriage? (ScienceBlog) https://scienceblog.com/t-being-single-is-becoming-the-norm-rather-than-a-phase-record-quarter-of-american-40-year-olds-never-married-up-from-6-percent-1980-marriage-makes-people-healthier-happier-shakier-than-we-were-told/ 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.