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Good morning.

Stocks appear “directionless” at this moment in that early morning gains turned into losses … and now sit about even.  Following yesterday’s brutal decline, markets and investors can certainly use a pause to catch their collective breath and it looks like they will get one over this holiday weekend.

We do not seem to be in a great place right now.

I noticed the S&P is down around 23% since the start of the year, and this forced my memory to go back to 1987 when we saw the Dow dropped a similar amount … with the difference being that sharp decline took place in one single day … while now we have been hit with “death by a thousand cuts.”  The issue here is the reaction to this back then was for the Fed to promise liquidity, if needed, and banks to greatly increase the amount of loans to securities firms.  This instilled confidence and markets quickly rebounded, capturing more than half the decline.

The situation now, though, is a bit different.  Inflation is of enormous concern and any steps the Fed and Treasury take to increase confidence (and spending) might only serve to drive prices higher.  What do I think might instill investor confidence? I look for companies (many of which are cash rich) to announce stock buybacks … but I could be way off base.  After all, I’m just someone writing opinions and am completely naïve as to what is really going on behind the scenes.  Maybe I should post my views on Facebook.

In addition, labor still seems to be a big problem as the third story below tells us that (hold on to your hat) one-third of all LaGuardia flights were cancelled yesterday.  While weather was blamed there was a large amount of nationwide flights cancelled due to staffing shortages.  In some companies, you can often promote a person from one area and move them to another … such as moving an administrative assistant over to marketing.  But if there is a shortage for an airline pilot or truck driver … fast promotion is impossible.  It seems like it is going to be a long summer.

On a final note, I included an article below on working in the “Metaverse” … as it certainly appears we are heading this way … and the study cited provides a negative conclusion as to the merit of working this way.

I am not sure I agree.

Earlier this week, I led a team grading industry exams with my “underlings” located in Australia, Hong Kong, Qatar and Albania. Using MS Teams we met and conversed in real time with absolutely no delay whatsoever.  Obviously, so much has changed since the old AOL screeching modem days.  I do sense that once we have avatar improvements, we will have many more “office meetings” in the Metaverse … and as we adjust to this, studies surrounding this will be more favorable.  But again, I could be wrong.

And I think I didn’t mention this story before, but just can’t believe how crazy this world has become.

In a case that went to arbitration, a woman contracted a sexually transmitted disease while … um … fooling around in a car.  It was announced that the company insuring the car was found liable, and the insurance company has to pay out $5.2 million.

I really can’t wait to see the Farmers commercial on this one.

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
Direct: (610) 285-9905
cell: (856) 625-7915


A Look At The News | June 17, 2022

As of 11:57 AM today …

We are in the midst of the Fed raising rates … and people are starting to get a bit uneasy realizing how sharp increases could affect them directly (TheHill)

… and one area where it might be evident real soon is in the supermarket … as you find your favorite brands … or even entire product lines … could be missing (NYPost)

Meanwhile, some labor problems continue in certain areas … and this was quite evident yesterday at LaGuardia Airport where (gasp!) one-third of flights were cancelled (NYPost)

The articles surrounding people asking to take salaries in Bitcoin seem to have slowed … as cryptocurrencies have seen quite a decline (NPR)

It is important to make a good impression when you enter a room … but keep in mind it is equally important to leave a room making your visit memorable (in a good way) (ArtofManliness)

Many of us have gotten quite used to working remotely … and tech is improving so much that many virtual meetings might continue.  But is there a downside? (PCWorld)




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.