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Good morning:.

In normal times a headline inflation number of 3.4% (which includes volatile food and energy) would cause a bit of concern … but investors today are taking it all in stride … as core inflation is around 2.5% and the number seems to be inching down.  Still, I mention “in normal times” … for we are certainly not in normal times now as tariffs, Iran and an upcoming election as each can quickly change investor mood and portfolio results.

Regarding Iran, we have the daily announcement that an agreement is at hand … but, to be fair, the quietness in hostilities is rather comforting.  Even so, claims that the Strait is open is questionable due to the following paragraph:

The website (“Hormuz Strait Monitor”), which supposedly tracks traffic, claims 10 ships have gone through the Strait in the last 24 hours (as opposed to 60 normally), with 372 vessels waiting (180 of which are tankers).

A report dated August 11, 2026 by KPMG is interesting and I include it here verbatim:

“I have never seen anything like we are currently enduring, neither has the Fed. Jobs are being shed, while unemployment is falling and inflation is still too high. Productivity growth has accelerated but most of the boost due to AI is still ahead of us. That may mean the current fed funds rate may be too low to contain the current bout of inflation.”

Keep in mind this is before today’s inflation release so we will see how economist, Diane Swonk, might update her view in the weeks leading up to the next FOMC meeting.

On the good news front, Powerball is at $1 billion … so when you are done reading this you might want to rush out to buy a ticket for tonight’s drawing.

And one final note for today.  I included a few articles on dementia … as one view is the chances for its onset can be reduced by an experimental new procedure in China … though it is in its early stages of study.

But another claim is an easier, quicker and more accessible solution … as all you need to do is take a sauna.

That’s right … a simple sauna.

What makes the claim compelling is a large number of people were studied … and the time period of the review was quite long (20 years)!

Claim: “The men who used the sauna most often had dramatically lower rates of dementia and Alzheimer’s disease than those who used it least.”

… so go buy your Powerball ticket and then jump in a sauna

… but for heaven’s sake …

… please remember to turn it off.

Have a great day,

Joseph G. Witthohn, CFA

Have any questions? Please contact info@teamemerald.com

New and want to subscribe to Wit & Wisdom? Subscribe here   A Look At The News | August 12, 2026 As of 11:41 AM today … The betting markets will need to readjust the odds of a rate increase during the September meeting, as the “inflation as expected” appears to lower the need (APNews) https://apnews.com/article/consumer-prices-inflation-fed-interest-rates-150e179a6c6b3182ba05cedf0188394b   … and this would be a relief to those carrying credit card debt … as the borrowed amount is staggering … and higher rates would increase default risk for many (CNBC) https://www.cnbc.com/2026/08/11/ny-fed-credit-card-debt-hits-1point26-trillion-k-shaped-divide-persists.html   Chatbots are easy to use … as you can ask your computer for medical information, spiritual advice, financial views and even companionship … but should you? (NPR) https://www.npr.org/2026/08/12/nx-s1-5924813/ai-chatbots-financial-advice   The Powerball jackpot is now up to $1 billion … which allows you to dream for just a $2 dollar “investment” (that isn’t really an investment at all) (CNN) https://www.cnn.com/2026/08/12/business/powerball-wednesday-drawing   There is some excitement … because it is so important in the battle against dementia … in a new approach out of China.  Let’s hope this one is successful (Nature) https://www.nature.com/articles/d41586-026-02448-x   Though some think saunas will lower dementia risk … so we will include this in the list of possible ways to keep this horrible disease at bay (GaminTraveler) https://www.gamintraveler.com/2026/08/12/the-finnish-sauna-habit-linked-to-lower-dementia-risk-in-a-20-year-study/ 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.