Markets are relatively calm this morning, following some exciting action that took place yesterday afternoon … on the heels of one very interesting tweet … supplied by none other than Elon Musk, as he claimed pondering taking Tesla private at some later date (as he, supposedly, has funding in place). Immediately people wondered about the legality of such a claim (as the stock rose sharply) … and quickly stories were written by people (with opposite views) claiming he is similar to either Tony Stark or PT Barnum.
It will, of course, be interesting to see how this all plays out.
Tariffs may be starting to take their toll on certain industries as, according to Purdue Center for Commercial Agriculture, more than a third of farmers anticipate farm income to drop by at least 20%. But, as we have learned recently, things can turn around quite quickly as negotiations (and threats) still seem to be going on. But you have to wonder if there are other things at play. The first article below tells of a company that is laying people off, blaming tariffs. Keep in mind, though, it is a U.S. company assembling televisions. I didn’t even know any TVs were being made in this country anymore … so I am unsure if the understandable anger should be aimed at the tariffs … or at the collapse of an industry … for a product we manufacture here to any large extent.
Getting back to the markets … according to Daily Shot, the fear index (aka “The Vix”) closed below 11 for the first time since January. Investor complacency? Investor calmness in the face of all that is going on? Investor’s Business Daily is reporting that economic optimism has been climbing and the chart I am seeing shows this (view of the economy 6-months out) to be at the highest point this decade.
I tossed in some interesting articles this morning on such things as plastic becoming a bigger and bigger problem as time goes on (though you can sure the “anti-straw” movement will advance to much larger items) and the cloning of pets.
But the most interesting … and wonderful of all … is the last article that states women are more attracted to men with beer bellies! Goodbye diet! Hello French fries!
Speaking of which, I just had a physical.
The doctor said “don’t eat anything fatty.”
I said,” like bacon and hamburgers?”
He said, “No fatty, don’t eat anything”
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
… as of 10:54 AM today …
Quick Look at the News
When it comes to a trade war, it is widely thought that one country gains and another loses ... but one group gets hurt ... on both "sides" ... workers (TheState)https://www.thestate.com/news/politics-government/article216196580.html
Why are states so interested in sports betting? For revenue, of course ... and though it just started up, Delaware has seen quite a bit of action ... with football season yet to arrive (LegalSportsReport)https://www.legalsportsreport.com/22651/delaware-sports-betting-handle-july-2018/
... though some who have bet on Bitcoin are not too happy right now ... as the SEC postpones a decision on an ETF ... and the cryptocurrency headed south soon after (CNBC)https://www.cnbc.com/2018/08/08/bitcoin-price-falls-after-sec-postpones-key-etf-decision.html
One of the things many learn in marketing are Michael Porter's Five Forces ... and one of these is substitute goods. The plastic straw business is facing this ... as many are moving toward paper (CNN)https://money.cnn.com/2018/08/07/news/companies/alternative-straws/index.html
... but are straws only the first step? Probably ... as there is a claim that in around 30 years the oceans will hold more plastic by weight that it has fish (CNN)https://www.cnn.com/2018/03/21/health/ocean-plastic-intl/index.html
Many grow quite attached to their pets ... and, being a dog lover, this is quite understandable. But can cloning bring back a long-cherished pet? And is this ethical? (VanityFair)https://www.vanityfair.com/style/2018/08/dog-cloning-animal-sooam-hwang
There is hope after all ... diet be damned! It seems that women are more attracted to men with beer bellies ... though I suspect a big wallet helps too (Newsner)https://en.newsner.com/family/researchers-conclude-men-with-beer-bellies-get-more-women-and-live-longer/