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Good morning.

Markets are down this morning as investors are undergoing a few self-imposed days of nervousness as they await Fed comments due out later this week.

It seems plans for a rate increase might be hinted at, as recent inflation growth were at levels not seen during the lifetime of quite a few traders.  And, not helping confidence in the Fed at all, Mohamed El-Erian is going so far as defining the Fed’s “transitory” comments as possibly the “worst inflation call in the history of the Fed.”  If you want to see the riveting (and terribly scary) seven-minute discussion, it is included in the second article included below.

Meanwhile, Covid cases continue to run rampant in the Northeast … and Philadelphia just announced plans (similar to New York and San Francisco) to only allow vaccinated diners in restaurants starting in a few weeks.  Restaurant owners nationwide fear expansion of these mandates to their own communities … as staff was just starting to come back to the workplace.  It is important to keep in mind that government assistance might be slow in coming this time … as “virus fatigue” not only exists within our population, but seems to have entered the halls of Congress.

“That’s the last straw” someone at McDonalds must have shouted as an adjustment is being made for some type of “sippy cup lid” to replace straws.  The interesting thing here is that the lids, supposedly, will have the same amount of plastic the straws do … but the thought might be that with the right marketing team, you can overcome anything.

Motor Trend just announced its “Truck of the Year” for 2022 … and the recipient is not even on the road yet … the Rivian!   This is quite interesting as I also read the CEO of Lucid (disclosure: I own some stock) feels his $169,000 electric vehicle creation will drop to $70,000 by end of next year … and a $25,000 car is in the plans within the next 4 years.  My opinion is that if you are not up to speed yet (no pun intended) with electric vehicles, you might want to do some investigating.  It seems the speed at which these are being purchased is continuing and offerings by Lucid, Volkswagen, Rivian and Tesla will continue to expand – especially as supply chain problems lessen – and your next big car purchase might actually be electric.

That’s it for today.  I am off to Costco again to stock up on some things before prices jump.

I will say one thing … I learn a lot at Costco just by reading the boxes.

I was born a male and identify as a male … but I recently learned that according to Stouffer’s Lasagna, I’m a family of 4.

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

Quick Look at the News | December 13, 2021

As of 11:59 AM today …

What do experts think of Fed comments on inflation?  Not much … according to Mohamed El- Erian … who does have quite a bit of experience in the subject (CNBC)

On Face the Nation, Dr. El-Erian goes point-to-point on steps the Fed should take to get rising prices under control (CBSNews)

… and many of those who have been food shopping of late might agree with those screaming about inflation (CNN)

… while those living on fixed income (especially retirees) could be in the worst shape of all … as rising prices may force some to work longer than anticipated (TheGuardian)

For any who just refuse to get a vaccine because of the thought of a needle, might be relieved to learn that a nasal spray might solve the problem (NewAtlas)

The EV (electric vehicle) movement is well underway … as Rivian was just named the 2022 “truck of the year” … even though they are not yet on the road (Mashable)

Sustainability is something many are increasing of companies they deal with … so McDonald’s is getting on board by ditching straws.  But what are they replacing them with? (Timeout)

That big conference room might become a thing of the past … as work meetings might no longer be person-to-person and, instead, be avatar-to-avatar.  And it may happen soon (VRScout)


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.