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Good morning:.

Stocks are relatively flat this morning as there is little change in the major indices … but it remains to be seen if this is the calm before the storm as we begin a two-month period that has, historically, not been overly kind to investors.  Even so, we are often reminded that the stock market doesn’t own a calendar, and anyone who moved to the sidelines during the 2025 August-September timeframe would have been sadly disappointed.

Trying to review this led me … as it often does … to data published on the AJOVista website (an Emerald company) that shows historical returns of different indices going back as far as 50 years.

What caught my eye for 2026 is that I know how well the S&P has been doing through the end of July … but it really pointed out how well small cap stocks have done, as measured by the Russell 2000 Index.  In discussions with friends, the S&P often comes up (“I’ll just put my money in the S&P Index”) but I obnoxiously remind them there is so much more … and other asset classes, including international along with emerging markets, should be considered.  Okay, I’ve kicked that horse long enough and so I’ll move on.

Treasury Secretary Bessent recently claimed that the famed “K-economy” is over … and there is no longer a widening of the economic gap.  I loudly claim “nonsense” on that statement.

Sure, after-tax age growth has improved for those on the lower end of income distribution (as pointed out by Daily Shot), but do we really believe that “trickle-down economics” … as taught in grad school … has helped as much as the academics envisioned it would?  I did include one article today and apologize that it was written by a politician … but it did address the topic.

I am a little concerned … but no longer puzzled … by the election of candidates touting more socialistic platforms. It seems people are getting angered over this widening economic gap … and want to try whatever they can to get the “trickle-down” claims to actually trickle down for it seems it is “trickling up” at a quickening pace.

On a final note, there is one item forecasted by Clearview that is presented in Daily Shot and that is “the number of data centers is poised to explode.”

We do know the local issues with AI data centers. We read about the protests, and we see the yard signs … but I am afraid this will all be for naught.

They are coming … and coming fast.

.. I only wonder just how prepared we really are

Have a great day,

Joseph G. Witthohn, CFA

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New and want to subscribe to Wit & Wisdom? Subscribe here   A Look At The News | August 6, 2026 As of 11:49 AM today … There seems to be a problem with AI in that no one really knows … following “improvements” now in the works … how it will all play out. Will we one day regret its creation and use? (CNN) https://www.cnn.com/2026/08/06/tech/ai-rogue-anthropic-openai-hinton   When boarding planes, many of us face a stressful situation in that the overhead compartments are often jammed (due to others, of course). Is charging to use them a solution? (TheStreet) https://www.thestreet.com/travel/an-airline-has-started-charging-to-use-the-overhead-lockers   I normally don’t include political stuff … as try to avoid it … but I found the statement here interesting on the failure of “trickle-down economics” (TexasTribune) https://www.texastribune.org/2026/08/05/texas-senate-james-talarico-economic-agenda-ken-paxton/   I can’t tell whether or not this is factual … or one of those claims just meant to get views … but to read the coming “Super El Nino” to be the worst in 500 years grabbed my attention (MensJournal) https://www.mensjournal.com/news/super-el-nino-map-shows-winter-rain-snow-predictions-amid-strongest-event-in-500-years   … but some in South Florida aren’t as worried as others about any massive storm … as a company will fly them to safety on short notice … for a subscription fee (CTVNews) https://www.ctvnews.ca/world/article/want-to-be-first-to-escape-a-hurricane-this-new-company-is-selling-seats-on-private-planes/   Tesla is having a problem (yes, another problem) with their Robotaxis in that there haven’t been enough accidents to allow them to get good data (Forbes) https://www.forbes.com/sites/bradtempleton/2026/08/05/studying-fault-in-robotaxi-crashes-teslas-not-getting-hit-enough/ 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.