Joseph G. Witthohn, CFA
VP of Product Development Emerald Asset Management

Good morning.

It seems investors, today, are getting a bit nervous due to two major events this morning.

First of all, a portion of the yield curve has inverted … and since yield curve inversion has historically been used to forecast a slowdown in economic activity … many are worried about what the tea leaves might be telling us. What is especially interesting is, according to Daily Shot, it seems there is a bolstering of the thought that the Fed might be cutting rates again in 2020 … something that would typically not be done if the strong economic advance keeps rolling along.

Not helping those invested, of course, is a Bloomberg report claiming that JP Morgan Asset Management feels cash (you heard this correctly … cash) offers a better “risk-adjusted-return” than equities … for the first time in a decade.

A second bit of concern is an aftershock from the G20 meeting. If you recall, this ended with a well-received announcement by the administration that … not only was the meeting with China a success … but tariffs on U.S. autos were being reduced. The problem? There is no confirmation on paper … and any gleeful announcement related to a trade agreement only seems to be coming from the U.S.

Could things have been misunderstood? Investors certainly hope not.

I included a report yesterday on the (allegedly) drunk driver … asleep at the wheel of a Tesla … eventually stopped by the police. I did not have information on how far the car went in “self-driving” mode … but just found out. 7 miles! You can be sure the Tesla advertising department is trying to figure out a way to use this in some future ad … though, of course, in all likelihood they won’t be able.

On a final note for today, I created utter confusion when I texted my wife that I was going to take my son to the mall to go Christmas shopping and to see Satan.

I hate the person who invented auto-correct.

May he burn in hello.

Have a great day,

Joseph G. Witthohn, CFA
Vice President
Emerald Asset Management PA, LLC
610 Freedom Business Center Drive
King of Prussia, PA 19406
Direct: (610) 285-9905
wit@teamemerald.com

… as of 11:19 AM today …

Quick Look at the News

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