Good morning. Jobs data coming in this morning was bleak … as not only was the number below consensus, but the previous print was adjusted downward. The Fed is on high alert. Markets didn’t react much to the news. While some are quite happy seeing this improving the chances the Fed will cut rates, others are worried that the economy might (as Mark Zandi of Moody’s has warned) be moving closer to recession. And what caused today’s blemish? FactSet points to “possible impacts from labor shortages, skittish consumers, and AI disruptions.” Meanwhile, there is growing concern that the Fed will soon lose its independence as the President, according to CNBC, said he will “… soon have a majority of his nominees on the (Fed) board who will back his desire to slash interest rates.” Independence of the Federal Reserve is now more in question than ever … and this comment certainly doesn’t lead to comfort. At long last, Congress might actually be doing something about personal trading, as a bill is being introduced to ban buys and sells of individual stocks … and it is about time, in my view. Sure, there was the “STOCK Act” in 2012 but all that did was allow for transparency … giving everyone a ring-side seat to see how much politicians profited from information many feel akin to “insider” knowledge. By the way … some might be excited about this (as I am) but Tesla now has the “robotaxi app” that can be used to summon what may be the transportation of the future. I have yet to ride in a driverless vehicle, but friends who did seem to have enjoyed the experience once they got over quite a bit of nervousness (to put it mildly) as their trip began. You know, there has been a lot in the news lately that … unfortunately … we are now forced to question on an almost-daily basis … be it the illness of leaders … or things of a much more scandalous nature. I think an opinion article in a publication called “Mediaite” says it best, pointing out: “This is the world we live in now. Facts are optional. Narratives are king. A shadow on X can feel like breaking news. Politicians seize the whisper, recast it, and send it back into circulation. Corrections rarely catch up. The phantom becomes a cudgel. The echo becomes the story.” Frankly, I … like many … are growing tired of it. That about wraps it up for today … other than to point out I’ve read that Covid might be making a reappearance and some communities are calling for masks, while a few pharmacies are getting vaccines ready. My fear, of course, is that there might be a repeat of panic and mandates, with mandates again put in place … with people excluded from certain things unless they show proof of vaccination. Which … as we have learned before … … would be a tremendous pain in the arm. Have a great day, Joseph G. Witthohn, CFA Have any questions? Please contact info@teamemerald.com
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