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

Good morning.

Stocks have rebounded for the most part following yesterday’s sharp decline … but still have a ways to go before making up for yesterday’s loss in its entirety.  

Covid still appears to be on everyone’s mind as not only does it have an effect on health (as one article today points out some of the afflicted feel effects a half year later) … but also disrupts company forecasts … as how do you factor in this type of uncertainty?
The Bezos space shot today seemed to go off without a hitch and I will admit that I am fascinated by the “space race” going on among the billionaires.  There is an interesting article in Live Science (included below) concluding our quality of life is heading downhill fast due to abuse of resources … so we should, obviously, figure out a way to go to another planet … as the one we are on now might soon be beyond repair.

Okay … off my soapbox for now … 

The recent housing bubble might cool off soon as Daily Shot is reporting the NHIB Traffic of Perspective Buyers has declined and more people seem to be listing homes, trying to take advantage of the run up.  In addition, Redfin reports an increasing percentage of listings with price drops (which is quite contrary to those sold higher than asking price).

One of the things that irks me are headlines that seem quite boastful (in my opinion).  I saw one yesterday in MarketWatch and this was the title: “Expect a 10% or worse correction in U.S. stocks by mid-August, says this forecaster with a proven stock record.”  Pretty scary, huh?  Well, I looked at the forecaster with the proven track record, Hayes Martin of Market Extremes, and found some examples of Garzarelli moments … including his August 2014 call for clients to get completely out of stocks and go to cash for markets were about to tumble 20% (which, of course, didn’t happen).  I am not saying he is incorrect … and I don’t have enough of his history to pull up his batting average … but I just go crazy when there are claims of “proven track records” … making it sound as if the crystal ball held is as clear as day.

That’s about it for now.

As many of you know, I am a big fan of the theatre and I was reading last night about Houdini … the famed magician of years ago.

I often wondered how he kept seeming to “disappear” in plain view of the audience and learned that early in his career he used trap doors in every act.

It seems it was just a stage he was going through.

Have a great day and I’ll try better tomorrow,

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 11:51 AM today …

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