Good morning.

The shutdown is on its 28th day and investors, for the most part, seem to be ignoring this as they remain more focused on new market records.  Yes, all three major U.S. market indexes reached records this morning even as concerns over an “AI-driven” market (and subsequent bubble) continue.

One issue, of course, is the effect on … well … “Main Street (not Wall Street)” … as the shutdown certainly seems to be taking its toll on employees.  The New York Times is reporting the largest union of federal workers (American Federation of Government Employees) changed its tune and now requests an immediate end to the shutdown … as the claim is 730,000 of their group are working without pay with an additional 670,000 furloughed entirely.

These are, of course, really big numbers … but, frankly, these are more than numbers.  Sadly, these are people.

On top of this, three companies announced layoffs this morning … Chegg … focused on education services … is laying off 45% of its workforce, citing the “new realities of AI,” Amazon cites plans to cut 14,000 corporate jobs now … with more to come in the new year … in which AI is also mentioned as a catalyst behind this action.  Meanwhile, UPS just announced a cut of up to 34,000 workers … even as ADP put out a report claiming overall employment might be on the rebound from a poor September showing.  Confused?  Yep.  Me too.

These reports will, no doubt, be included as part of the conversation among Fed participants today and tomorrow … as it is expected inflation concerns will be discounted in the attempt to keep unemployment in check by lowering the fed funds rate by 25 basis points (0.25%).

As many know, I am a big fan of robotics and can hardly wait for a world of delivery drones, flying cars and personal robots to arrive … so jumped on an article (last one below) asking if the elderly will be ready for personal caretakers to … well … take care of them.  The article is an interesting one as it rightfully does not give glowing praise but, instead, points out the challenges for both the elderly and caretakers … even as the need for assistance rapidly grows.

I also came across a few articles on sports gambling … not only with the NBA (and mafia) being in cahoots … but also issues where young adults are falling into the sports betting habit … and becoming financially ruined.

I am glad though that sports leagues and others are addressing this and doing their best to keep people from getting in over their heads.

And how do I know about their efforts to keep people from becoming addicted?

I learned about their efforts on the FanDuel Pregame show, sponsored by bet365 right before the big game at DraftKings arena … as I watched betting lines dance across my screen.

Have a great day,

Joseph G. Witthohn, CFA

Have any questions? Please contact info@teamemerald.com

A Look At The News | October 28, 2025 As of 10:02 AM today: There is growing concern whether or not AI has created a market bubble that will … at some point … “pop” … but records continue to be set (USAToday) https://www.usatoday.com/story/money/2025/10/27/ai-stock-market-bubble-cash/86927868007/   … but one area where the air has already escaped the balloon is with population growth … once thought to be a problem due to expansion … but now the opposite has occurred (NPR) https://www.npr.org/2025/10/27/nx-s1-5576355/population-babies-capitalism   Even so, some things situations do improve … and a good example is the number of overweight people … as drugs have brought down the nation’s obesity rate (NPR) https://www.npr.org/sections/shots-health-news/2025/10/28/nx-s1-5587805/glp-1-ozempic-zepbound-gallup-obesity-rate   Halloween is this week and when you look in your basket you might notice chocolate choices are way down.  Yep, the expense jumped and alternatives are now handed out in droves (CNN) https://www.cnn.com/2025/10/26/business/why-halloween-candy-is-getting-more-expensive-and-less-chocolate-y   … but it is beneficial to be extra careful around Halloween … as there are higher incidents of accidents … both in the home and on the roads with kids focused more on candy than cars (CNN) https://www.cnn.com/2025/10/24/health/halloween-accidents-falls-emergency-safety-wellness   The robots are coming … not in the factories, but in your homes. Would you trust a machine to care for you in your old age?  You might not have a choice (BBC) https://www.bbc.com/news/articles/c9wdzyyglq5o 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.