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Good morning.

It didn’t take much to get investors in a party mood this morning … just an indication that inflation finally might have peaked … giving hope that the Fed might tap on the brakes and slow down its historical boost in interest rates.

But will the festive mood continue?   After all … the increase over the last year has been 7.7% … quite a long way away from the Fed’s target.

One area of concern (okay, that a lie … there are many areas of concern) is with the housing market as Morgan Stanley Research reports that existing home sales are now falling even faster than they did during the “Great Financial Crisis.”

While a lot of the decline in home sales has to do with limited inventory, the AEI Housing Center sees a 10-15% drop in the much-appreciated home prices by the end of next year.

Of course, with a drop in home prices there is great hope that rents also slow their rapid rise as the second item included below is indeed troubling … as it tells the story of elderly individuals who have been forced out of their homes (living in cars) because rent increases have become too much of a burden.

Okay … I’ll get soundly booed for the next comment so get ready.

While it always seems good as a property investor to raise rents, sometimes there is an unintended consequence as it relates to those who are the actual renters. We don’t strive to become the “Mr. Potter” of today (referencing “It’s a Wonderful Life”) but sometimes the road to achieve higher ROI becomes littered with the belongings of those unable to withstand the revenue increase.

The other note I have for today is on Elon Musk related to his moves regarding Twitter. If I read it correctly, a “blue check” was on an account if it was verified as “real.” This vetting process was changed and to receive the verification, all you have to do is pay $8/month … so many had quite a lot of fun … paid the $8 and immediately put up fake and parody accounts.  As I understand it, quite a few who have been using Twitter are upset by this and … per third article below … moving to a relatively new social platform called Mastodon.

So a designer of cars moves on to building tunnels and flying to space and now on to social media.  What can go wrong?

Speaking of social media, we all have to be very careful … as one mistake can stay with us a long time … and even ruin a career.

I just heard of a prominent local person who was fired for sleeping with one of his patients.  After 7 years of medical school … the result is now a complete waste of time, effort, training and money.

It goes to show you that one mistake can ruin your life.

I understand he is a great guy and was a brilliant veterinarian.

Have a great day,

Joseph G. Witthohn, CFA
Vice President
Emerald Asset Management PA, LLC
610 Freedom Business Center Drive
King of Prussia, PA 19406
cell: (856) 625-7915

A Look At The News November 10, 2022

As of 10:59 AM today

Has inflation finally peaked? The rise in October might (and I use the word “might” on purpose) indicate that the inflation rise is finally starting to slow (CNBC)

… which one group will be happy to see … the elderly … as for some, rising prices are forcing them out of their (rented) homes and onto the streets (NPR)

Is Twitter still cool? It appears that a few fans are seeking another social media outlet and wonder if Mastodon is the place to go (NPR)

The world’s population recently reached 8 million … but worries about how to care for a growing amount of people might be premature. Some now worry about underpopulation (NewsScientist)

Do you kind of get the sense that people are … well … ruder lately?  It appears this puts even more stress on frontline workers … which could be, in part, a reason for the worker shortage (Axios)

One of the things (of many) that bothers me is a presentation that is … well … flat.  Start off with a fun story.  Now that is something that grabs my attention (Entrepreneur)




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.