person
Click here to have Wit & Wisdom sent directly to your inbox

 

Listen to the latest episode of the Emerald Wit & Wisdom Podcast (03/21/24)

 

Good morning.

The headlines just now coming across Bloomberg say it all: “U.S. Jobs Roar Again as Payrolls Jump 330,000” … and the more ominous (for some): “Strong Jobs Data Suggests Fed Can Stay Patient on Inflation.”

On the one hand, the employment report should be taken as very good news … after all, our neighbors … our friends … our country … is working … and the economy appears to be chugging along quite nicely.  On the other hand, however, focus shifts towards inflation and the Fed … and while Jerome Powell (and Goldman) claim cuts are in order, one Fed governor threw investors into quite a tizzy yesterday by saying that unless inflation is “cured” (my word), there is a possibility that (gulp!) rate cuts will not take place this year.

While the market opened in positive territory, some of that might be a rebound of the previous day’s sharp decline … which a few see as overdone.

I just wonder if some investors will stay on the sidelines for the next few days … regardless of economic reports … after all, there is a report out on Drudge (via Daily Express) that the CIA is warning Iran might retaliate against Israel before the weekend is out and we have, of course, a solar eclipse that a few feel is the sure sign of “end times” (notwithstanding the 225 solar eclipses around the globe during the last century, which were obviously false alarms).

Meanwhile, today is Friday and I need to cut today’s note a little short as I am leaving soon to attend a funeral … and, besides … it is Friday, after all … and as pointed out yesterday, it is the most unproductive day of the working week.

The combination of these events on a Friday reminds me of something economist Groucho Marx once said:

“No one goes before his time …

… unless the boss leaves early.”

Have a great day and a wonderful weekend,

Joseph G. Witthohn, CFA

 

A Look At The News | April 5, 2024

As of 9:30 AM today

The jobs number came in and, once again, was better than expected … and the unemployment rate ticked lower (CNBC)

https://www.cnbc.com/2024/04/05/job-growth-totaled-303000-in-march-better-than-expected-and-unemployment-was-3point8percent.html

 

According to this report, the likelihood of a recession during the next 12 months has fallen to its lowest level in almost two years (Bankrate)

https://www.bankrate.com/banking/federal-reserve/economic-indicator-survey-recession-risks-april-2024/

 

… so, is that what is behind one Fed governor’s claim that they might not be cutting rates this year?  Goldman Sachs tends to disagree and feels cuts are still on the way (CNBC)

https://www.cnbc.com/2024/04/05/top-goldman-economist-downplays-prospect-of-zero-fed-rate-cuts-in-2024.html

 

With such a sharp, positive move in the markets during the first quarter of the year the question comes up as to whether or not the bull is tired …and the run now over (Finbold)

https://finbold.com/is-the-stock-market-bull-run-now-over/

 

A lot of noise is projected in the news … so much that we miss stories that really matter, including in the field of medicine. If open wounds are found to heal faster, many lives will change (Investing)

https://au.investing.com/news/stock-market-news/newly-discovered-injectable-molecule-speeds-up-wound-healing-by-250-in-animal-model-3187716

 

Okay, you took milk out of the fridge and put it on the counter.  The phone rang … you got busy … and left it out. How long will it be before it is no longer safe to drink? (CNN)

https://www.cnn.com/wbd/how-long-can-milk-sit-out/index.html

____________________________________________________________

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.