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Listen to the latest episode of the Emerald Wit & Wisdom Podcast (5/18/23)

 

Good morning.

The news this weekend seemed … for a short while at least … quite positive regarding a resolution to the debt-ceiling situation … but now it will face the House Rules Committee first, then the House and the Senate soon after that.  One good thing about the bill is the debt limit would be extended for two years … so we wouldn’t have to go through the shenanigans (my definition) again for a while.

Markets now appear mixed as once this is behind us (assuming passage) focus will return on other things … like inflation and the Fed … both of which could wipe the smiles off the face of investors who were comforted by this weekend’s budget news.

What do I mean by this?

Daily Shot tells us consumer spending was greater than expected and “economic activity remains robust.”  Normally, this would be considered a very good thing … in fact, a great thing, but results in a worrisome Reuters headline pointing out: “Inflation is Sticking Around. It’s Ammo for Another Interest-Rate Hike.”

In recent weeks, markets have improved based … in part … on views that the Fed will pause for a while.  Will the thought of an increase now work its way into a renewed “risk-off” attitude?

The “AI” stuff is continuing to gather steam and there are two interesting opinions I share today.

The first comes from Jeremy Siegel who feels investment in this area had not reached bubble proportions … at least, not yet.

But the more important note, in my view, is one shared by the CEO of Nvidia providing a warning to those who have not yet made moves to adopt AI … as his claim is that those companies that do not embrace it … will be “left behind.”  There have been many occasions in which companies were slow to accept new technologies … where missteps (even for once-powerful firms) can be devastating.

That about wraps it up for today as I must run out at lunchtime.

It’s my anniversary today.

20 glorious years.

36 total.

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
wit@teamemerald.com
 #vaccinatetosave

A Look At The News May 30, 2023
As of 11:42 AM today

 

While news channels were busy giving indication the debt-ceiling crisis is over, it still must meet approval of individuals from both parties … which might not be easy (NBCNews)

https://www.nbcnews.com/politics/congress/live-blog/debt-blog-monday-rcna86530

 

The worst might be over for the drop in home prices (something very few of us may have noticed) as Case-Shiller data reports (CNBC)

https://www.cnbc.com/2023/05/30/home-price-declines-may-be-over-sp-case-shiller-says.html

 

… even so, a lot of Americans happen to be “house poor” … and I will have to chime in as maintenance costs alone are … well (on a personal level) … painful (DNYUZ)

https://dnyuz.com/2023/05/30/more-than-1-in-4-american-homeowners-is-house-poor/

 

“AI” (Artificial Intelligence) might not be a fad at all … as the CEO of one company warns that companies which ignore it … might be left far behind (GeeksforGeeks)

https://www.geeksforgeeks.org/nvidia-ceo-says-those-without-ai-expertise-will-be-left-behind/

 

… as some looked at the recent run-up in AI-related stocks, saying it had signs of being a “bubble.”  Well, Jeremy Siegel gives the view that it is not … at least, not yet (CNBC)

https://www.cnbc.com/2023/05/29/its-not-a-bubble-yet-whartons-jeremy-siegel-predicts-big-tech-boom-fueled-by-ai.html

 

Another area that appears to have continued growth is clean energy … as solar is attracting more money than oil … and Europe has expanded its wind use (CBSNews)

https://www.cbsnews.com/news/solar-power-oil-investment-russia-invasion-energy-renewable-boom/

 

Heroes do, in fact, exist in our society and Mackenzie Scoot continues to be a leader in … well … I guess the word is goodness. With more money than she needs, her focus is on others (Upworthy)

https://scoop.upworthy.com/mackenzie-scott-donated-more-in-two-years-than-jeff-bezos-lifetime-559350

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The statements above are supplied for educational purposes only. The statements depict the viewpoints and opinion of the author and are not necessarily the views of Emerald Asset Management or its affiliates. The information described herein is taken from sources which are believed to be reliable, but the accuracy and completeness of such information is not guaranteed by us.