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Good morning:.

It’s a tough day this morning in bond world as … according to Bloomberg and other sites … “inflation angst,” “persistent government turmoil” and worries about government debt (as if that is a newly discovered concern) are driving bond yields higher.

Not helping is the AI boom … as many firms find the need to take on debt (at higher costs) to finance some fairly aggressive programs.

Stocks retreated in the face of this, as the 30-year bond yield reached 5.33% … the highest since 2002 … leading investors to weigh getting a government guaranteed 5% or putting money into a stock market that, of course, offers much higher risk (amid better expected return which is far from guaranteed).

The continuing war adds to the concern … especially in light of its inflationary effects … as the President posted there are “no talks or conversations going on, or scheduled, with the Islamic Republic of Iran,” while Jared Kushner claims talks have been “robust” … each according to the Times of Israel as we near the sixth month anniversary of the conflict.

Still, as we’ve learned, investor mood can change with just one tweet … and things can turn around rapidly.

One item starting to make the news is the nation’s debt … which will soon cross the $40 trillion level.  This will be mentioned countless times prior to the mid-term elections … which each candidate proposing a “cure” … with medicine they happen to possess … and then such talk will quiet down until the next trillion dollars is added … probably in around 5 months at the rate we are going.  Funny … okay, not really funny … but every few years there are shouts that this is unsustainable.  It was back in 2017 that we hit $20 trillion … meaning that in the past 9 years, our debt grew at the same level as the first 241 years of our country’s existence. When will it really matter? $50 trillion?  $60 trillion? $80 trillion? Never?  Sorry. Asking for a friend.

On a final note, I have started to plan my football watching this year … and the last article below really hit home as there are so many different streaming services that it will be expensive to make sure not to miss any games.

But I have a solution.

I won’t pay annual charges … and will only take on monthly subscriptions until the Jets are completely out of contention …

… figuring I’ll only need to pay until the end of September.

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 18, 2026 As of 11:24 AM today … As bond prices drop, yields rise … and right now the yield of the 30-year is rising rapidly … and could go higher still (CNBC) https://www.cnbc.com/2026/08/18/30-year-treasury-yield-three-things-that-could-drive-it-even-higher.html   A lot will be written in the next month about how our nation’s $40 trillion debt is unsustainable, but concerns were also raised when it hit $30 trillion … which was only a short time ago (PBS) https://www.pbs.org/newshour/show/national-debt-nears-40-trillion-how-we-got-here-and-why-it-matters   The unemployment number has been dropping … but this is not due to more people working as it excludes people dropping out of the workforce … of which there are plenty (NYPost) https://nypost.com/2026/08/17/business/male-gen-zers-are-dropping-out-of-the-us-job-market-in-droves/   While high global temperatures are uncomfortable, there is a certain group of people for which hot weather is outright dangerous … the elderly … and this is only now starting to be realized (ABC) https://www.abc.net.au/news/health/2026-08-18/heat-stress-older-australians-new-global-research/107032860   An all-electric plane flew for just under a half hour for $5 worth of energy cost.  And I don’t mean a small plane … this was rather large.  A hybrid plane is in the works (ZMEScience) https://www.zmescience.com/future/worlds-largest-all-electric-airplane-just-flew-for-27-minutes-on-about-5-of-power/   Are you a NFL junkie?  Well, it’ll cost you … for with so many different streaming sites carrying games, you risk not seeing your team if you don’t have the right one (TheStreet) https://www.thestreet.com/entertainment/nfl-junkies-forced-to-pay-big-bucks-for-2026-season-to-watch-games 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.