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Good morning:.

Following yesterday’s market retreat, there is a slight rebound this morning as investors hope the bull will restart its recent run.

Even so, growing U.S. debt levels and bond yields have a few concerned as Treasury Secretary Bessent tried to calm things down by telling CNBC that the deficit has “likely peaked” while pointing at the $40 trillion debt, attempting to reassure markets by giving the opinion that “we’ll grow out of that.”

There are a lot of levers being pulled right now in the attempt to rein in prices and it came across the wires as I was writing the last paragraph that the Trump Administration just announced a suspension of “out-of-quota” tariffs on imported ground beef … which would allow sales at 25% below current market prices.  The time limit placed on this reduction should surprise no one as it is temporary and scheduled to be in place until just after the mid-term elections.

Other announced action this morning pertains to Trump Accounts … which is meant to bolster savings of children … as Fox Business reports investments “rooted in ESG criteria” are not permitted to be used as Secretary Bessent does not want (his words) to: “advance political activism or ideological agendas” … which the administration evidently feels is promoted in these types of funds.

I just wonder if crypto will one day be allowed.

One of the problems with innovation is that certain instances (during development) tend to slow down progress … even though companies learn by their mistakes and improve their products.

Three situations recently stood out.

China has been the world leader in “humanoid robots” and Global Times reports 40,000 were shipped in the first half of the year … with China having 97% of the world’s shipments (“are you paying attention U.S.?  We are far behind!”).

Well, during a recent event showing off dance moves, a robot sharply twirled, turned, lifted its leg and kicked a small child spectator in the stomach … ending the event. These have not been perfected yet, but are shipping out regardless … so if you get one it bears careful watching … especially around the kids.

Tesla auto-pilot is … in a word … fascinating … and I read a report last night that one driver in California allows his Tesla to have complete control for around 98% of his driving.  Wow!  Even so, there is a recent video where a supposed self-driving Tesla sped up to a tremendous speed … and crashed right into a home killing an elderly woman who … up until that moment … was enjoying her afternoon television show.

And a video making the rounds on the internet this morning showed an Amazon drone delivery … where the package-carrying drone hovered over a house … lowered itself … and proceeded to drop its contents right into the outdoor hot tub.

Things are happening fast and we need to decide if we are willing to accept the occasional accident … no matter how severe … while accepting that resulting improvements made will make us all better off.

I vote yes.

Have a great day,

Joseph G. Witthohn, CFA

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New and want to subscribe to Wit & Wisdom? Subscribe here   A Look At The News | August 21, 2026 As of 11:49 AM today … The $40 trillion debt situation announced earlier this week came as a bit of a surprise … not in the amount but in its arrival … 2 years ahead of forecasts (Fool) https://www.fool.com/investing/2026/08/20/the-u-s-just-hit-usd40-trillion-in-debt-2-years-ahead-of-schedule-here-s-what-investors-need-to-know/   … but the number does not alarm the Treasury Secretary who feels the deficit has “peaked” and with regard to the $40 trillion number, “we can grow our way out of that.”  Let’s hope (CNBC) https://www.cnbc.com/2026/08/20/bessent-budget-deficit-trump.html   … as the co-head of global fundamental research at JP Morgan feels recent intervention is like paying off your mortgage with a credit card … indicating future problems (CNBC) https://www.cnbc.com/2026/08/21/us-bond-intervention-shifting-problem-future-jpmorgan.html   The Trump Accounts started but if your child wants to invest in pro-environment funds … forget it … as the Trump administration feels there is too much “political activism” (FoxBusiness) https://www.foxbusiness.com/economy/treasury-department-bars-esg-funds-from-trump-accounts-citing-political-activism-concerns   This summer was a hot one (and dangerously so) in parts of the European Union … and the sequel that might come next year could be worse (EuroNews) https://www.euronews.com/2026/08/21/el-nino-to-strengthen-rapidly-and-fuel-extreme-weather-when-will-europe-face-its-wrath   There is growing concern over the Flock cameras … with their ability to read license plates, allowing driver movements to be “tracked.” Is the concern valid? (NPR) https://www.npr.org/2026/08/21/nx-s1-5939851/flock-cameras-police-block-surveillance-vandalize 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.