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

Good morning.

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
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 11:28 AM today …

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