Good morning.

Investors were clamoring for good news, and it may have arrived this morning with an inflation report showing consumer prices rose less than expected in February.  Okay … it wasn’t too far below expectations, but we’ll cheer for anything that even hints of positivity … especially if it takes our focus … even for a moment … away from the continuing tariff battle(s).

Fickle and uncertain as this may be … as things can change with whatever report next comes our way … this now brings hope that the Fed could cut rates as soon as June.  Meanwhile USA Today reports mortgage rates declined for the sixth consecutive week … though views of rate decline might be going hand-in-hand with signs of a weakening economy.

Meanwhile, it is growing increasingly difficult to stay on top of the tariff situation … as news on that front is constantly changing.  I mean, let’s just look at the last 24 hours …

First, we had Ottawa announcing a 25% surcharge on electricity coming into the U.S. in response to Trump’s Canadian tariffs. This was followed by the threat that electricity would be shut off completely … if anything else was announced by the U.S. … which happened … only to shortly be followed by a comment that the initial electricity surcharge was being suspended.  Later that evening, the steel and aluminum tariffs hit … and new combatant EU is responding by raising their own tariffs on certain U.S. imports.  And this is all in the last day … with certainly much more to come.

Not to get too much into the weeds on this but I was asked to teach a class on investments and finance at a local university.  They might want to reconsider this as I might not be as capable as they think.  During a press briefing yesterday, White House press secretary informed the audience that “… tariffs are a tax cut for the American people …” making me realize that I certainly must not have a clear understanding of tariffs at all … leaving me thankful that obviously smart people are pulling the levers.

Maybe it’s the changing of the clocks that makes me a little confused.

Speaking of this, there has been a sudden change in views over “daylight savings time” as ChartR reports that a majority of Americans now want this to end (which is quite a drop over recent years).  I don’t know … I kind of like it getting dark later in the spring and summer.

That about wraps up my griping for today.

As I mentioned recently, we got a new dog … and early training has not been easy.

In the middle of the night, she barked something like 500 times …

… but that’s only a ruff estimate.

Have a great day,

Joseph G. Witthohn, CFA

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