Good morning.

Stock futures showed slight gains early this morning as some might be treating yesterday’s dip as a slight speed bump on the road to stock enrichment.

Still, there are concerns being asked about the overdependence on AI stocks to keep the market on solid ground as questions have recently been raised about “circularity.”  And what is the worry?  A company makes an important chip. They invest in another company that buys items from a third company that purchases its chips from the first company.  Money going out the door that eventually comes back in … which some might find akin to a perpetual motion machine while others might position it all as incest.

Sorry, that might have been a bit harsh … but in the face of a government shutdown, employment jitters and rising inflation … FOMO (fear of missing out) seems to be driving a lot of investors into stocks … with present tech holders happily (and nervously) along for the ride.

I just don’t know what to think of it all.

I included a quick article below on something called “Perplexity” and find myself so intrigued that if I didn’t have a ton of stuff to do today, I would put everything aside and spend a few hours exploring it.  It is just incredible to realize that it was only a short while ago that almost no one used … or even knew about … AI … and now it is a topic on the agenda of most firms … for ignoring it risks being left in the dust.

If you have not tried it, I would suggest doing something as simple as going to openai.com and … well … asking a simple query … or help in writing a letter.  Name the topic and “whoosh,” within seconds it arrives.  Note the importance of reviewing it carefully as answers are still occasionally wrong (for example, I still have not found one “bot” that correctly tells me who got the most hits in the 1969 World Series … yet the wrong answer is quite confidently expressed, even including rationale).

But is the use and dependence on AI making us … well … dumber?  Are we substituting machine answers for basic logic?

It seems that way … and, interestingly, socialist Denmark is limiting social media use by kids with the view “it is robbing them of their childhood.”

Along these lines, there was a disturbing article out this morning where AI is now being incorporated into children’s toys in China and soon to arrive in the U.S.  What it might mean is that kids can have conversations with their dolls … which, of course, perfectly sets the stage for a Rod Serlin type of “Twilight Zone” episode.

I’ll end it here as I have some stock trading to do quickly.

I need to pick up some AI stocks before a politician starts buying things and drives up the price.

Have a great day,

Joseph G. Witthohn, CFA

Have any questions? Please contact info@teamemerald.com

A Look At The News | October 8, 2025 As of 9:15 AM today: Consumers are getting a bit concerned over rising prices.  No, not what they already see but what they feel the future might hold as there is little confidence inflation will slow (CNBC) https://www.cnbc.com/2025/10/07/new-york-fed-consumer-outlook-sours-as-inflation-expectations-rise.html   For years we’ve heard competing stories about dairy that is good for you … and what is not.  Does milk (pure, plain, straight from the cow) build your body 12 ways as once claimed? (NPR) https://www.npr.org/sections/shots-health-news/2025/09/08/nx-s1-5528747/what-kind-of-dairy-does-a-body-good-science-is-updating-the-answer   With the government shutdown continuing, some who handle flights are simply not showing up for work.  It might be important to keep the rules handy if flying anywhere (GaminTraveler) https://www.gamintraveler.com/2025/10/07/what-to-do-when-your-flight-gets-delayed/   It is interesting that a society that claims almost complete freedom has made this decision, but Denmark is about to ban young kids from using social media (CNN) https://www.cnn.com/2025/10/08/tech/denmark-children-social-media-ban-scli-intl   This is quite intriguing as the expansion of AI abilities continues daily.  Reading through this I know what I’ll be doing this weekend … brushing up on AI so I don’t feel left behind (TomsGuide) https://www.tomsguide.com/ai/youre-using-perplexity-all-wrong-heres-how-to-get-the-most-out-of-the-ai-tool   Retirement? Ha! That’s for old people.  No longer are retired execs watching the world go by as some are actually starting (yes, starting) businesses in their very late years (Entrepreneur) https://www.entrepreneur.com/business-news/seniors-are-starting-businesses-in-their-70s-and-80s/498051   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. Emerald Asset Management PA, LLC | 717-556-8900 | 3175 Oregon Pike, Leola, PA 17540 Want to change how you receive these emails? You can unsubscribe from this list. ———————————————————————————- 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.