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

Good morning.

Early indications point toward an unpleasant day for investors as the Dow is down around 400 points to start the day with CNBC citing inflation worries to be the catalyst.  

While you might have seen prices stabilize a bit over the last week or so, worry over inflation is still there … for not everyone has witnessed a slowdown in the upward price trend.   One story below tells the plight of a young fairly-affluent couple … trying to buy a home … but who keep getting outbid (sometimes substantially) by like-minded (wealthier) individuals bidding far above the asking price.

Are prices certainly heading up … and will some not mind?  Well … Bank of America announced plans to set its own minimum wage at $25/hour.  By reading this, you might get the impression that a rise in prices is not a problem … especially if salaries keep up … but a big issue happens to be retirees living on fixed income.  

In recent weeks we read stories of athletes receiving salaries … and companies investing heavily … in cryptocurrencies.  And who could blame them (although they might regret the move at the moment)?  Story-after-story told of how forecasters were claiming Bitcoin’s rise would continue. An April 28 Forbes article predicted it was “about to soar to $100,000.”  On March 22, a CNBC article told of the probably of a rise to $300,000 before pulling back and one Bloomberg analyst called for $400,000 by the end of this year.   At least CoinDesk’s call for $1 million advanced to a 5-year timeframe.

Oh my … how the sharp decline (with Bitcoin down around 50% from its recent peak) causes a shift in attitude as it is now being published that the European Central Bank (“ECB”) is saying that the cryptocurrency craze is worse than the Tulipmania bubble of the 1600s.

I guess, for disclosure reasons, I should admit I do have a limited amount of “crypto” … and will also admit that watching the sudden blood-letting is anything but comfortable.

One other thing that caught my eye this morning was news that Fidelity will now allow investors as young as 13-years old to purchase stocks.  Of course, the claim is this will be under the watchful eyes of their parents (who will also have a Fidelity account) … but we all know how this will work out.  Kids will do some things on their own … and one lucky participant will pick a security that soars in value … and he (or she) will be paraded around with stories written  a with a guest appearance on “Ellen” before it goes off the air.  And this child will, no doubt, be invited to explain what investment move was chosen to obtain new-found wealth as viewers clamor to mimic the strategy.

We have seen this movie before and, surprising, no one ever tires of watching it again.

That’s about it for today but I made sure to include an article (last one below) of how professional golfers are “bulking up” in order to hit the ball quite a bit farther.  Of course, I am keenly focused on such information as I am still striving to break 100 … getting oh so close … and just need that one extra thing to help me achieve this life-long, frustrating goal.

That is why my note is out a bit early today … as I am playing later … and need to get ready if today will finally be the day.

Thanks to this article, I know how to be better prepared.

Before I tee off, I plan to do a pushup.

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
cell: (856) 625-7915

… As of 10:01 AM today …

Quick Look at the News

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