Good morning. With slight market gains, investors took early inflation news in stride … but what is most interesting is reading one report claiming, “Inflation picked up steam in July” (Yahoo), while another tells a bit of an opposite Bloomberg story of gains in US core inflation being smaller than expected. And the Fed’s probable reaction? A pause (again) to be announced at the next meeting taking place in 2 weeks. This would, of course, frustrate the President and quite a few people are saying rates should be cut sooner … rather than later … but the loudest voices calling for this are people jockeying to become the next Chair of the Fed … when Jay Powell completes his term … resigns … or gets fired (which might result in a bit of market … and dollar … disruption). But economists such as David Kelly or JP Morgan feel it is still too early for the Fed to cut rates … and points to tariffs for the reason. No, not because we might only be starting to see results of tariffs … but mainly because of the uncertainty … as tariff percentages seem to change on an almost daily basis … with some attached for non-trade-related reasons. I, however, am not one to complain about irrationality surrounding tariffs or anything else for that matter … for I, myself, am not rational at times. I golfed yesterday and … I don’t know how to explain it … but mental demons continue to take over. For some reason, any time I hit a ball either behind a tree or in some very deep brush I convince myself that taking a penalty and moving the ball is unwise … as I convince myself I suddenly have the ability to hit that 1% shot, through the trees or out of the rough … only to find myself cursing my decision 7 shots later when I finally put it in the hole. Meanwhile one of the playing partners forced upon us was constantly talking about the wonders of AI … “Artificial Intelligence” … and leads me to the articles included below. My belief is AI is a good thing … a very good thing … when used properly … but the jury is still out over the use of computer-simulated programs for everything imaginable. In one article (a good thing, perhaps, though I’m not sure) it is pointed out that 1/3 of video games are used by the elderly. While this could help combat loneliness … and help with brain stimulation … does it replace the need … the important need … of human interaction … even among this group? This moves on to the next article which finds people creating a “virtual partner” … a love interest … with whom to go on virtual dates … and hold intimate conversation. Creepy? Perhaps. But the most concerning of all is to learn … via last article below … that some children are using AI-created “people” as friends … eliminating the need to converse with “real” friends and reducing any requirement for social interaction. Is AI moving too fast for our own good? Asking for a friend. And not a virtual one. Meanwhile, some technology is rather cool to use. I just learned about this app that shows me what I look like as an aging, overweight person. It’s called a camera. Have a great day, Joseph G. Witthohn, CFA Have any questions? Please contact info@teamemerald.com
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