Good morning. Markets look to be little changed at the open, but with a few bellwether stocks reporting over the next few days temperatures are expected to heat up. But many will look beyond the numbers behind the recent quarter and glance ahead … for the effects of the tariffs have yet to really take hold. Even so, a note on Daily Shot reports an over- 200% price increase in common items such as: Thick kitchen cleaning towels, Manual chicken/meat shredders, Blind air conditioning gap brushes, wax strips and eyebrow gel. By the way, I had no idea what some of these are … only reporting on what I’ve read … but it is highly expected many other common items will soon see their prices jump … some of which will be shocking. There are a couple of related problems developing. Bloomberg claims we should be ready as “supply shock is coming” and provided the shocking statement of “it may last all the way to Christmas.” While you may think there is plenty of time (since Christmas is still 241 days away) many companies replenish their stocks by the middle of May … which is just a couple of weeks away. The clock is ticking! Container shipments from China have already started to decline. U.S. businesses being told to pay extra to have good delivered have begun cancelling orders and companies in China have, in turn, started to cancel receipt of U.S. goods (as an example, pork shipments from the U.S. is way down). Let’s face it. No one wins in a trade war. No one. And the American consumer might soon … literally … pay the price. Meanwhile, China is not sitting idly by. As the article below points out, they are searching for new clients … new partners … some of which might be eager to strengthen ties between them. If you are traveling this summer, you might want to make sure to change your identification to “Real ID.” While not wanting to sit at the Department of Motor Vehicles for what may seem like forever, some states allow you to do it online. That’s how I did mine in Pennsylvania … and it was rather simple. And on a final note, the last article below confirms what many other reports claim … that walking offers a great avenue to better health. Walking … as an exercise … is quite easy to do … doesn’t take a lot of time … and much more pleasant now that the weather is warming up. Me? I’m also a believer. When a place I am visiting is on a lower floor, I look for the sign that says “stairs.” But, to be fair, I would probably do so even if there was no health benefit. Being a bit claustrophobic, I do have a slight fear of elevators. Whenever I can … I take steps to avoid them. Have a great day, Joseph G. Witthohn, CFA Have any questions? Please contact info@teamemerald.com
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