Good morning. Often, over the past years, tech stocks have taken a beating during summer months … something writers cutely named a “tech wreck.” But today the opposite is occurring and strong reports from both Microsoft and Meta (formerly Facebook) probably have Bill Gates and Mark Zuckerberg out shopping for bigger yachts. For the moment at least, the AI boom continues. The Fed ended its meeting yesterday … without making a move on interest rates … but the big news coming out of the FOMC was the dissent of two members … a rarity … indicating a bit of division in the group. What should be broadcast a bit more, however, is the two members feeling rates should have immediately been cut are Christopher Waller and Michelle Bowman … both rumored to be in line to take over the leadership role at the end of Jay Powell’s term … and both agreeing with the view of the person who will make the appointment decision. By the way, this is the first Fed “double disagreement” in over 30 years! What this will no doubt lead to is a contentious September meeting. Get your popcorn ready! And hope it’s not at a higher price by then. Tariffs are also in the news … as Treasury Secretary Bessent shares the view that an agreement with China might soon be announced. But a question is starting to be raised as to what degree tariffs are being used as a “policy weapon” … completely removed from the initially announced sole purpose of trade fairness. Buy Russian or Venezuelan oil? Tariff! Prosecute a politician we happen to like? Tariff! Recognize a country we don’t want you to? Tariff! Not read enough Wit & Wisdom? Tariff! Even the mere threat sends shudders throughout the globe. It seems what we will do over the next few weeks is sit back and see whether or not Jay Powell was right about tariffs resulting in a rise in prices … or if the main inflation we are actually presently seeing is not in the stores … but in the media … as with the exception of beef prices, I haven’t noticed a big jump in prices. I forgot to mention … speaking of shopping … I picked up something new at Costco the other day … and don’t know whether it was a good thing or a bad thing. I bought duck eggs. I read they are a bit different and really look forward to trying them … though the thought of eating what would have been a cute little duck kind of makes me hesitate. The power of childhood cartoons. I was going to use them for dinner last night … but opened a bottle of wine … and then I forgot. My mind completely went blanc. Have a great day, Joseph G. Witthohn, CFA Have any questions? Please contact info@teamemerald.com
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