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Good morning.

April showers?  Heck, for investors April has proven to be a hurricane, as it appears stocks will have their worst month since March of 2020 (the start of the pandemic).

Of course, we don’t know what May will bring … other than the high probability of the Fed announcing a rise in rates, which many feel will be 50 bp (0.50%).  And even though GDP was down for the first quarter (per yesterday’s shocking news), organizations such as Pantheon Economics feel this quarter will confirm we have not (yet) entered into a recession and will be positive (typically, but not always, classified as two consecutive quarters of decline).

Now, getting back to the GDP drop … while lower government spending and companies working off of inventory were factored in, a major part for the decline was due to imported goods … which resulted in a record trade deficit.   And yes … for those wondering … many tariffs are still in effect.

One of this morning’s interesting stories (included below) has to do with college graduates … as the National Association of Colleges and Employers reports that (my words) graduates are dreaming when it comes to their assessment of the starting salary they will earn … as they typically overshoot their paycheck by $50,000/year!

But there is other news worth noting … disappointing news … as reports that 14% of college grads live below the “federal poverty threshold” and 48% of college grads are living paycheck-to-paycheck.   Let that sink in for a minute.  We are talking about college grads … who typically have higher earnings.  If college grads are at these levels, what about the population as a whole?  Maybe my comment that this is “disappointing” would be more accurate if I said, “worrisome.”

That about wraps it up for today as I get ready tonight to binge watch the final episodes of Ozark on Netflix.

I get tired staying up late to watch these things, but can’t help myself.  It’s either that or catch up on market news

… and with the way April is ending up … either event will result in me losing sleep.

Heck, I’m yawning already thinking about it … though I learned to realize something …

.. for a yawn is just a silent scream for a much needed cup of coffee.

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 | April 29, 2022

As of 10:45 AM today …

The Fed looks at a certain inflation number in helping them determine next steps.  What was announced this morning doesn’t seem it will halt the projected ½ point increase in May (CNBC)

… though rising prices don’t worry high earners as much … but who are high earners?  Soon-to-be college grads think it is them.  Many are wrong (CNBC)

One of the concerns with our climate situation is sea level increases and … right or wrong … one scenario calls for Houston to disappear in eighty years (MySanAntonio)

… yet others will point at snow and cold weather as proof there is no global warming … as environmentalists claim this doesn’t matter at all … and actually supports their views (SlashGear)

While some view the Metaverse and virtual reality as a waste of time, others look at the educational aspects and are excited about new opportunities (EdSurge)

Do you often find yourself in the middle of a meeting during which you realize it has gone on way too long?  Join the club.  This author feels anything over 25 minutes is not needed (FastCompany)

… and when negotiating (or making an offer) … do you have a tendency to round off?  Elon Musk and others have scientific backing to show this to be unwise (Inc)




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.