Stocks are slightly down to start the day as nervous investors play the game of trying to figure out the next move(s) by the Fed amid concern that inflation will be with us for quite a while.
Of course, rising prices are noticed immediately … especially when we try to purchase items (such as groceries or gasoline) that we buy on a weekly basis. Of course, it is frustrating. Just the other night I sat with someone at dinner who fumed at the price he just paid at the pump as he said he never paid so much to fill up his massive SUV (not recognizing prices have been higher in the past). Still, he was paying for dinner … so all I sheepishly did was nod, faking empathy.
There is one immediate concern, though, concerning prices … and that is the observation by Pantheon Macroeconomics that are going to see higher prices into the new year. With my bank paying me a whopping 0.10% for high yield checking (causing me to wonder why they aren’t beholden to the “truth in advertising” rules) I certainly realize that my purchasing power is rapidly eroding.
Oh well. I guess I’ll just have to ride this out and hope that these price bumps are only temporary.
Some workers should be able to do well, regardless of the increases. While reports out this morning showed a substantial gain in the number of workers during October, the Bureau of Labor Statistics reported an increase in productivity – something Desjardins Group claims should be resulting in comfortable wage gains.
Related to this, productivity is fresh in my mind as I read this morning that when farmers talk to cows … or play soft music … the result is that more milk is produced.
… which, obviously, is a case of going in one ear and out the udder.
Have a great day,
Joseph G. Witthohn, CFA
Emerald Asset Management PA, LLC
610 Freedom Business Center Drive
King of Prussia, PA 19406
Direct: (610) 285-9905
cell: (856) 625-7915
Quick Look at the News
Eyes are now on the Fed … and people wonder if this group shares concern over rising prices with strategists and the public, each of which notice that they pay more with each purchase (CNBC)https://www.cnbc.com/2021/11/02/federal-reserve-is-about-to-set-its-post-crisis-policy-course.html
… and there may soon be more people able to buy things (pushing demand up further) as more enter the workforce (CNBC)https://www.cnbc.com/2021/11/03/private-payrolls-up-571000-in-october-on-jump-in-hospitality-hires-topping-395000-estimate-.html
Some companies don’t have to do a lot of hiring … if they can find robots to replace workers. Such is the case at White Castle where those who make French fries are … well … not human (CNN)https://www.cnn.com/2021/11/02/business/flippy-2-white-castle/index.html
… and they might not need humans to deliver the fries either … as people are warming up to the idea of robotic delivery (APNews)https://apnews.com/article/coronavirus-pandemic-technology-science-business-europe-5b7dbb782f89ef3d586eefb9a33d5e1c
Each cooking (and delivery) idea mentioned above have one thing in common … they use up energy … and scientists are increasingly worried about how all this affects the planet (Gizmodo)https://gizmodo.com/the-scientists-are-terrified-1847973587
… and the big question asked by many … with answers all over the place … is just how will it actually get … and what does all this mean? (Grist)https://grist.org/science/goodbye-1-5-degrees-heres-how-hot-scientists-believe-the-world-will-get/
How much time do we spend in front of our computers? For many, it is hours per day … even kids … and no, we do not know the long-term effects (StudyFinds)https://www.studyfinds.org/childrens-screen-time-doubled/