Good morning.

An important inflation number was released this morning showing growth less than anticipated and markets reacted favorably upon seeing the result. Still, it might take one more reading before the Fed is comfortable … as the data had some distortions, according to the head of research at Fitch Ratings … but results to be announced just before the late-January meeting should give confirmation if the growth is indeed slowing.

If inflation is finally being corralled, it might help the mood of CFOs … as Daily Shot reports optimism among this group dropped by the most in over 2 years … but there is something quite interesting in the report as while “trade and tariffs” are cited as the biggest reason for concern, the surveyed group has more confidence in the performance of their own companies than they do about the U.S. economy at large.

I was chatting with a friend last night about some rather good shows on streaming sites (in fact, I was invited to do a background stint on “The Diplomat” but had to turn it down as I’m just too busy) and he pointed out that he would never watch a 3 hour movie … but will gladly binge-watch 4 or 5 one-hour episodes back-to-back of a series he likes.

It is just amazing how viewership has changed … as many of us pay extra to avoid ads… and then mindlessly watch 50 minutes of TikTok without question.

Meanwhile, AI continues to move along … and rapidly.

Alpine Macro points out that AI adoption is moving faster than any other tech in history … including radio from long ago and the internet much more recently.  And this should only continue.

But there is one problem … as these AI data centers are using a lot of electricity (causing everyone’s prices to rise) … and power grids are under tremendous strain.

In fact, one of the interesting games recently is when one AI-device will call another chatbot device (especially set up by airlines or store customer service) to complain about something … while humans just sit back and watch the mindless banter.

That about wraps it up for me today as I recently bought a kit where you can take a test … at home … to see if you have early signs of dementia.

The problem is it arrived on Monday and for the life of me I can’t remember where I put it … and it just dawned on me

… maybe that’s the test.

Have a great day,

Joseph G. Witthohn, CFA

Have any questions? Please contact info@teamemerald.com

A Look At The News | December 18, 2025 As of 11:56 AM today: Is there light at the end of the tunnel … or is that an oncoming train?  Inflation numbers came in today lower than expected with more major numbers coming in before the Fed next meets (NPR) https://www.npr.org/2025/12/18/nx-s1-5647510/inflation-economy-prices-affordability   … and these numbers are being watched closely by those worried that prices are making things less affordable. Will closer focus on spending allow people to start saving again? (ArtofManliness) https://www.artofmanliness.com/career-wealth/wealth/net-worth-mentality/   A big question is whether or not … as the article here states … to what degree slower inflation correlates with affordability … but at least the rise has slowed down (CNBC) https://www.cnbc.com/2025/12/18/cpi-inflation-breakdown.html   Okay, I am intrigued by this … very intrigued … as small solar setups … portable, actually … can lower the cost of electricity … but I need to read more to understand it (DW) https://www.dw.com/en/boom-small-solar-devices-plugged-into-household-sockets-german-energy-transition/a-75022163   The sudden move by a few countries to limit children’s use on social media might only be the start as cell phones are being cited as a reason behind lower test scores (NPR) https://www.npr.org/2025/12/14/nx-s1-5587585/is-decline-in-test-scores-linked-to-cell-phones   Great … just great. It seems quite a few are comfortable with Artificial Intelligence not only answering phone calls, but possibly making purchases. What could possibly go wrong? (CNBC) https://www.cnbc.com/2025/12/18/visa-ai-payments.html 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.