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Good morning.Following a day in which U.S. markets saw a sharp rally, recognition of the present uncertain economic situation re-entered the thoughts of investors and, at the open of today’s trading, a good portion of gains seen yesterday was ripped out of the hands of those who refused to believe the bouncing cat is dead.  But somehow the cat jumped up again and we are seeing a positive gain at the moment.

The interesting thing to note is the index is now around 3,775.  Heck, it was only around 6 months ago that we were flirting with 5,000.  Now that level seems like such a long way off.

I can barely comprehend that I now think of earlier this year as “the good old days.”

Why the turnaround this morning?  Possibly it was because Chairman Powell just told Congress the Fed is committed to controlling inflation … although I don’t know what he was expected to say.  I am sure he sees the effects of inflation every time he drives past a gas station or picks up groceries (assuming, of course, that he occasionally does his own shopping).

The administration made an interesting move this morning by announcing a “gas tax holiday” for the next 3 months to slightly lower the price at the pump.  Of course, this is only a minor dose of medicine as state taxes in many places makes up a majority of the “extra” charge for a gallon of gasoline.  I don’t expect Pennsylvania to follow suit, as their gas tax is used to fix and maintain roads (supposedly) … unless, of course, they just shift it over to another source of revenue.

Labor continues to be a problem as American Airlines actually is cancelling flights to 4 cities.  Normally I would shrug my shoulders at this news, but one of the airports (Islip, NY) is close to my hometown … which means if I need to use that airline to visit friends and family, I would end up flying into LaGuardia. Yuk.

Another story included this morning scares me to death … as the claim is 1/3 of elderly adults don’t have more than $10,000 saved for retirement.  Looking at budgets and knowing what it takes to run a household …  even a smaller one … especially in the face of the present inflation … you have to wonder if a heavier burden will eventually fall in the lap of the government to help this group.  What does that mean?  With over $30 trillion in national debt already … eyes might increasingly be focused on taxpayers to absorb the extra burden.

Extra taxes?  Oh my.  It will take two of me to be able to afford to live.

Speaking of which, I once dated a girl who had a twin … and people always asked me how I could tell them apart.

It was quite simple, actually.

Alison painted her nails red … and Bob had a beard.

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 June 22, 2022

As of 11:29 AM today

A gas tax holiday is being proposed … but it is uncertain if Congress will agree.  And not only do some in Congress not like this, economists are not necessarily on board (NPR)

https://www.npr.org/2022/06/22/1106642582/biden-wants-a-gas-tax-holiday-some-economists-say-thats-a-bad-idea

… yet there is another thing the administration proposes to get rid of … or at least reduce … the amount of nicotine in cigarettes.  This move also has found its critics.  (Axios)

https://www.axios.com/2022/06/22/biden-administration-take-buzz-cigarettes

Staffing shortages around the globe are causing quite a problem for many air travelers.  Not only are there not enough pilots, but important ground personnel are lacking (WSJ)

https://www.wsj.com/articles/airports-around-the-world-battle-long-lines-canceled-flights-11655818127

… and in the U.S. it resulted in a major airline stopping service to 4 cities.  Yikes!  One of them in Islip, NY is quite close to my hometown (USAToday)

https://www.usatoday.com/story/travel/airline-news/2022/06/21/american-airlines-ending-service-islip-ithaca-dubuque-toledo/7683884001/

According to one report, one-third of older Americans have less than $10,000 put away for retirement.  I do hope this is exaggerated (MarketWatch)

https://www.marketwatch.com/story/nearly-one-third-of-older-americans-have-less-than-10-000-for-retirement-11655834396

I never thought about this, but I will start washing my clothes in cold water to reduce my carbon footprint … although I certainly draw the line at air-drying my clothes (FastCompany)

https://www.fastcompany.com/90762900/how-washing-your-clothes-with-cold-water-could-help-save-carbon-emissions-and-ocean-pollution

As of 11:57 AM today

Well, there we have it … a 75 bp (0.75%) rise by the Fed as they imply… strongly … inflation might have been underestimated by them as take action many feel a bit late (USAToday)

https://www.usatoday.com/story/money/2022/06/15/fed-interest-rates-hike/7631195001/

… and, yes, this could drive us into a recession as individuals – who would normally be buying things – start to delay purchases (where they can) (CNBC)

https://www.cnbc.com/2022/06/16/millennial-millionaires-are-delaying-home-car-purchases-due-to-inflation-.html

… but it is not just discretionary items affected.  A big jump in mortgage rates really affects affordability of homes … where soaring prices were already enough of an issue (CNBC)

https://www.cnbc.com/2022/06/14/30-year-mortgage-rate-surges-to-6point28percent-up-from-5point5percent-just-a-week-ago.html

It is important to keep sight on the big picture. Make sure you don’t “overextend” as credit scores are quite important … and young adults can start early to build this up (CNBC)

https://www.cnbc.com/2022/06/16/how-young-adults-can-start-building-credit.html

Did you enjoy watching “The Squid Game?”  Well … now it is going “live” … and with a really big prize you can apply to be a contestant (Decider)

https://decider.com/2022/06/15/squid-game-reality-show-how-to-apply/

While many have not yet explored the “Metaverse” … companies are starting to get prepared, as this seems to be one area where “catch up” can be quite costly for those who wait (ReadWrite)

https://readwrite.com/the-virtualization-of-customer-support-customer-experience-in-the-metaverse/

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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.