Good morning. Stocks … as measured by the S&P … are down for the 4th consecutive day … but this might be only temporary as there were two positive reports that might, hopefully, outweigh Wal-Mart’s claim of “tariff-related cost pressures.” Housing (remember housing?) saw an uptick in sales of existing homes … which was a surprise to many analysts … even as mortgage rates remain high … as a greater inventory of homes on the market seem starting to get some buyers interested. And who knows? If mortgage rates come down a little, maybe the cost of that home you have been eyeing on Zillow will come down enough for you to make an offer. There was also positive news on the manufacturing front as … instead of declining, happened to expand at its fastest rate in almost three years. While still a bit early in the game, effects of the tariffs … so far … appear to be minimal … with an increase in questions as to how much is going into U.S. coffers and just who is absorbing the costs … exporters … importers … or consumers (and to what degree). One effect being witnessed already is in the cost of vegetables … as the first article below points out many farms have been affected as some laborers, fearing deportation, are no longer showing up in the fields. There are certain industries that do depend on these workers … farming, construction, landscaping and restaurants for example … and it is still too early to tell the result to areas in which the workforce has contracted. The last article below is especially troubling … as while the headline pointing out the drop in “reading for pleasure” dropped … the scariest part of the article is the claim that … “the literacy level in the U.S. is estimated to be about 79%, which ranks as 36th globally.” Understand that … there are 35 countries with a higher literacy rate than the U.S. Obviously, something is terribly wrong. On a final note, I’ll bring up Powerball again. There was no winner last night, so the jackpot has climbed to $700 million! Just for fun, I figured out what to do if I was the lucky winner. Buy a new car? No. A new house? Nope. A new wife? Tempting, but no. Instead, I will buy the perfect item … expensive, sure but I’ll get good use out of it. If I win $700 million … I have one item in mind … … a congressman. Have a great day, Joseph G. Witthohn, CFA Have any questions? Please contact info@teamemerald.com
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