Investors (and markets) are still in wait-and-see mode watching news from Iran, wondering just when a breakthrough in negotiations will occur.  A problem is the mixed messages from the White House which at one moment claims resolution is imminent and then, in the next few minutes, threatens an increase in bombing.  But what seems to be starting to set in right now is “announcement fatigue” … with statements starting to be ignored as we celebrate today the 3-month anniversary of when this “short term” war began.

Inflation numbers came in this morning and while it was exactly what was expected (a rarity) Personal Consumption Expenditures (“PCE”) produced a number that … excluding food and energy … is the highest it has been in 2 ½ years.   And the chances of a rate cut at the next meeting?  Quite remote.

While the gap continues to widen between the “haves” and the “have nots” (which might better be addressed as the “saved” and “saved nots”) … economist Ed Yardeni made an interesting comment announcing the “K” economy (where the economic gap widens) has become the “G” economy.  And what is that?  He smartly defines the G economy as one in which those of the baby boomer generation who have savings are not necessarily spending entirely on themselves, for they are giving/gifting a portion of their acorns to other family members … who might otherwise not be able to absorb the rising costs of living on their own.  And this is what is helping to keep the spending number up.

My story of the day has to do with realization.

Yesterday I took a drive towards the city of Philadelphia and at an intersection stood a man with a sign begging from money. Of course, being from New York taught me the strategy of keeping my window closed, locking the doors, looking straight ahead, not making eye contact,

… and I was left … as I always am … wondering such things as just who this person was, if they legitimately need money, what they would do with it … and how they ever ended up in this position.

I thought the begging would stop when I arrived home.

But then I got text messages … not one, but four.

The first was from someone who is running for Lieutenant Governor asking for funds.  The second was someone asking for help as they try to defeat an opponent running for Congress in Texas.  The third was to help some Senate candidate in Louisiana and the fourth was from guy in Tennessee … and I stopped reading.

After thinking it through … although the approach is different … I found little difference between these people and the man on the street …

… but I will know how I will react to each of them …

… I just won’t make eye contact.

Have a great day,

Joseph G. Witthohn, CFA

Have any questions? Please contact info@teamemerald.com

A Look At The News | May 28, 2026 As of 11:21 AM today … The U.S.-Iran conflict continues even as hints are given that negotiations are ongoing. Even so, the attacks are called “limited” (NBCNews) https://www.nbcnews.com/world/iran/us-military-carries-limited-attacks-southern-iran-us-official-says-rcna347254   … meanwhile the Fed is facing a bit of an issue as the Fed’s “preferred gauge” on inflation is still quite a bit above the target often cited by Jay Powell … who is no longer at the helm (CNBC) https://www.cnbc.com/2026/05/28/core-inflation-hit-an-annual-rate-of-3point3percent-in-april-as-expected-feds-preferred-gauge-shows-.html   … for higher costs are fine for some (who have enough savings to handle it) but some do not and the jump in “food insecurity” is startling (LibertyStreetEconomics) https://libertystreeteconomics.newyorkfed.org/2026/05/food-insecurity-and-consumer-pessimism/   Concerns over “insider trading” exists on some of these betting sites as one Google employee reviewed some data, placed a winning bet … and is now in hot water (CNBC) https://www.cnbc.com/2026/05/27/google-employee-polymarket-insider-trading.html   There are few surge pricing areas more troubling for consumers than in the airline industry.  Book early? Book late?  Book on a Tuesday? Use a VPN? One method claims to work (BroganAbroad) https://broganabroad.com/book-too-early-and-youll-overpay-book-too-late-and-youll-overpay-heres-the-window-that-actually-works/   Ah, it’s spring … and time to put some plants in the garden.  But if you want big, beefy tomatoes don’t just let them sit (ArtofManliness) https://www.realsimple.com/method-to-grow-more-tomatoes-11967758   … but sometimes it is tough to go into your garden … as the occasional pest (the mosquito) stops by to pay a visit.  Cheaply reduce their number with a simple contraption (ArtofManliness) https://www.artofmanliness.com/lifestyle/homeownership/mosquito-bucket/ 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.

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