Stocks are bouncing around (moving back and forth between positive and negative territory) as investors try to get their heads around recent Fed announcements, and any economics effects of the recent Covid variant.
First of all, the Fed.
Yesterday the Fed implied that three rate hikes could be in the cards for next year … a stunning reversal as the word “transitory” … when relating to inflation views … seems to finally be dead and buried. Investors initially cheered, as it removes (to a degree) a bit of uncertainty … and gives the view that the Fed has moved away from its cynical reputation of being asleep at the switch.
Still, Bloomberg charts show a 50% chance of the first hike taking place my March … so maybe a degree of uncertainly still presents itself.
I also noticed in the news this morning that concern over the variant appears to be increasing as a few major houses advised holiday parties be put on hold. It is important to keep in mind that this does have an effect on so many … not for the planning … but financially.
Many restaurants (and servers) depend greatly on parties during the Christmas season to generate income … and that includes New Year’s Eve celebrations. Tips? Staffing? Heck … even planning for what may or may not occur a few weeks out seems impossible.
Please remember that in your holiday spending. If you do dine out … or pick up food … an extra amount for a tip would likely be very much appreciated … and help brighten someone’s holiday.
On a final note, I was in my garage earlier today … getting things ready for recycling and it dawned on me that I am quickly getting old.
I sat staring at an Amazon box I prepared to cut up but had to stop when I realized I couldn’t bring myself to do it …
… I mean … after all …it is a really, really, really good box.
Have a great day,
Joseph G. Witthohn, CFA
Emerald Asset Management PA, LLC
610 Freedom Business Center Drive
King of Prussia, PA 19406
Direct: (610) 285-9905
cell: (856) 625-7915
As of 11:19 AM today …
The waiting is over … for now, at least … as the Fed is taking more of an anti-inflation stance and forecasts rate hikes in the coming year (CNBC)
… meanwhile, companies are still holding on to their employees … as the weekly jobless claims number is the lowest it has been in most of our lifetimes (CNN)
Capitalism at its best, I guess … as a major politician is pushing back against the thought that those who set the rules be forbidden to attempt to profit from those rules (FoxBusiness)
What is the biggest business threat out there right now? It could be cyber security as IT people work hard to stay one step ahead (CNN)
and speaking of staying one step ahead … New York City is making plans to combat climate change as a wall is reportedly being built to keep rising tides at bay (no pun intended) (EuroNews)
How many times do you realize an event is coming up … forcing you to diet for a few days … thinking that will make a difference? How much can you lose in a week? (Parade)
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.