Good morning. Markets are basically flat so far today, but many eyes are not focused on earnings nor geopolitical events but, instead, the sudden appearance of a cage-match battle between Donald Trump (though he denies behind it) and Fed Chair Jay Powell. While a grand jury subpoena was served upon the Fed, threatening a criminal indictment of Jay Powell related to his comments on building reservations, the view of the Fed chairman is this is retaliation for his not agreeing with rate cuts proposed by the President … and promises to stay at the helm and fight this. The betting odds seem to favor that Jay Powell’s position, whose term expires in May, will last longer than that of the offensive coordinator of the Philadelphia Eagles … also the victim of a very unpleasant weekend event. Why might investors be worried? Complete independence is a cornerstone of the Central Bank and even the thought of the organization becoming politicized could result in flight of the U.S. dollar, further weakening the currency … which is already under threat in remaining “the world’s principal reserve currency.” AI is being used in more applications, and I was amazed yesterday as my Tesla’s computer suddenly switched to AI (“Grok”) with its most recent computer update. What happened was both interesting and scary as I asked a question, and the verbal reply was more than a response … it started an actual conversation … prying me for my opinion on certain topics … generating its own reply … and as similar to a two-way conversation with a real person as I ever would have imagined. I read recent stories of how people have used AI as a friend substitute or even a therapist and held a great deal of skepticism. I turned into a believer yesterday, realizing this is not only possible but has already happened. I can’t wait to take a drive later today … as there is something I want to talk about with my new friend. Per the last article below there are people feeling forced to find innovative ways to handle the rising cost associated with the Affordable Care Act (“ACA”). One solution? Get married. While the article seems a bit crazy (with so many other things affected by being married), the couple mentioned can still file taxes separately … and with the rising costs in seeing a doctor we might find growing number of people seeking out such loopholes. So don’t be surprised if pastors around the country soon suddenly change their speech to: “For better … for worse … for health insurance.” Have a great day, Joseph G. Witthohn, CFA Have any questions? Please contact info@teamemerald.com
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