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

Good morning.

Markets are mixed this last day of July, but there is little for investors to complain about … at least as far as stocks are concerned, as there is a chance we will see our 4th monthly gain in a row.

Still, there is a bit of worry about the weeks ahead as a stimulus battle is going on in Washington and people seem to be starting to wonder just who is going to end up paying for any generosity. But it is not only stimulus payments on the minds of some … as a growing number of Americans are questioning the government’s future financial ability to support Social Security … as the pandemic has certainly affected payments into the system … and could be forcing many to be withdrawing funds sooner than was anticipated pre-virus.

Not only have inflows into Social Security been affected, but state and local governments depend on taxes … both sales taxes and gasoline. And with savings rates increasing substantially of late, and commuting cut down quite a bit … a lessening in tax dollars collected puts a strain on budgets for this year and next. Obviously, a cut in some services could be in the cards.

The GDP number reported yesterday was … in a word … terrible … and news headlines were fast to announce it was the worst in history. Well … this morning Daily Shot supplied a chart created by Deutsche Bank Research that shows there were four quarters in which the decline was actually worse (1921, 1932 twice, and 1946).

Speaking of Daily Shot … today is the last day they provide their free newsletter to Wall Street Journal subscribers. If you want to continue, a subscription ($100/year) is required. I made sure to sign up as I find their daily commentary to be invaluable.

For those who are wondering, there will not be a charge to receive my own daily note. It is free (but keep in mind you get what you pay for) though I tell people the information I provide is priceless … as I’ve always lived by the motto:

“If you don’t toot your own horn, you’ll go through life with an untooted horn.”

On a final note, I will admit there is a bit of concern that we will have another shutdown … which is why both the stimulus and virus cases (and deaths) are being watched so closely.

I just went back-to-school shopping for my kid. Do you know what I bought him? Clothes … for both of us … which is easy since his classroom is right next to my kitchen.

It seems that the first day of school, he and I will be wearing the same thing.

Matching pajamas.

Have a great weekend,

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
wit@teamemerald.com
#flattenthecurve

… as of 11:51 AM today …

Quick Look at the News

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