Stocks are continuing to bounce back after a recent decline with tech stocks, once again, leading the way.
What could be the cause of investor enthusiasm this fine day? It might be the belief, by some, that the Fed will keep rates low for quite some time. I find this interesting … as a CNBC survey provided the conclusion that “the Federal Reserve will stay on hold until 2023.”
Wait a minute … is someone drinking too much Kool-aid (spiked, no doubt)? We have no idea what is in store 2 ½ years from now … or even 1 year from now … or even tomorrow. For that reason, I nominate this as my silly survey of the day … absolutely meaningless … unless, of course, you are someone who generates surveys that you can, somehow, pass off as insightful.
And to what degree, anyway, will any move (or non-move) by the Fed affect the stock market? I’m not so sure … as money in the hands of investors and consumer is seen as a good thing (with the thought they might spend any surplus), but there appears to be increasing concern that the stimulus could be delayed until after the election or even into the new year.
I saw some news this morning that Pepsi … manufacturer of caffeine-laden Mountain Dew (which I sometimes drink in place of coffee on long road trips) … is now coming out with a drink to help you relax and to induce sleep. I certainly hope fellow drivers don’t start chugging these before getting on the road.
I saw one surprising factoid this morning as Statista … citing OICA data … is reporting that the number of cars manufactured in the U.S. from 2014 through 2019 fell by 40.9% … and this was pre-covid! It seems that this decline has been more than offset by China and India, which both showed strong growth in automobile manufacturing over that time period.
And how many cars does China produce? Around 1/3 of the world’s supply (although the country is less than 1/5 of the world’s population).
One-third … which I put in fraction form on purpose today, as I read a recent article on a monarch who made fractions famous:
Henry the 1/8.
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
cell: (856) 625-7915
… as of 11:28 AM today …
Quick Look at the News
As we continue to be concerned about employment as the virus continues, we note that purchases made online need to be delivered ... and delivery companies need people (CNN)https://www.cnn.com/2020/09/14/business/fedex-hiring-holiday-season/index.html
... and where do most people go to make these purchases? Amazon ... a company that needs to hire more workers to keep up with virus-induced demand (Forbes)https://www.forbes.com/sites/isabeltogoh/2020/09/14/amazon-is-hiring-a-further-100000-people-to-keep-up-with-pandemic-induced-demand/#11b1376ae5e3
... but what if there are not enough people to fill a position? Certain tasks don't need people, as robots will gladly step in (CNN)https://www.cnn.com/2020/09/14/business/robots-japan-supermarkets-spc-intl/index.html
Lewis Carroll wrote: "if you don't know where you are going, any road will take you there." There are flights to nowhere being sold ... and the good news? No need to pack (CNBC)https://www.cnbc.com/2020/09/15/airlines-sell-flights-to-nowhere-that-take-off-land-in-one-place.html
If a tax on sugar-laden soda created an uproar, I can't imagine what an outright ban to minors would face ... but Mexican authorities are considering halting sale of junk food to minors (NPR)https://www.npr.org/2020/09/14/912029399/we-had-to-take-action-states-in-mexico-move-to-ban-junk-food-sales-to-minors
Did you ever think about how the price of a custom cup of coffee could be around what some workers make in an entire hour? Save money. Make it at home. Donate the savings (Time)https://time.com/nextadvisor/banking/savings/save-money-by-making-coffee-at-home/
The population of the world is still growing ... and there is something funny about people ... they have to be fed. For those in nearly barren desert areas there might be some hope (BBC)https://www.bbc.com/future/bespoke/follow-the-food/the-spray-that-turns-deserts-into-farmland.html