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Good morning.

Not a good way to end the week.  Green shoots that people were expecting to pop up in the economy are now starting to appear as a peculiar shade of brown and equities opened the day in negative territory.

Still, opinions on where we go from here are all over the place and investors who bought into the “stay the course” strategy must be getting increasingly nervous as each week they see price quotes on their holdings lower than the week before.

Yes, I did mention opinions … and these must have investors more confused than ever.

According to TipRanks, Morgan Stanley advises that we will have a year-end rally and should end the year around 18% above present levels.  Reading the same tea leaves however, the co-CIO of Bridgewater Associates commented to Fortune Magazine that there is more market pain to come. And in the middle of this we have investor Stanley Druckenmiller who, looking at the Fed, tells us we might have 10 years of a market that goes absolutely nowhere.

Yikes.  If experts can’t agree then what chance is there for the common man?

Get ready to be even more confused with my next paragraph.

One of the issues pointed out in today’s Daily Shot is the U.S. consumer.  Their claim is: “markets have been looking for signs of a meaningful pullback in consumer spending” … offering the opinion that investors see continued buying as disappointing.

My only opinion on that is to be careful what you wish for.  If consumer spending dries up, corporate profits drop … layoffs occur … and … well, what then?  At times, I hate investment theorists.

On a final note regarding today’s action, what got investors particularly nervous (as if an excuse was needed) was a FedEx announcement that the global economy is in for a tough time.

But, hold on a minute.  I have an ax to grind with this group anyway.  I really wanted to buy a couple of items from an industry website … just a golf shirt (lightweight) and a hat … figuring that even if my game is in shambles, I might as well try to look good.

The Institute I am affiliated with only uses FedEx as the shipper.  The cost for the items? $82.  But on top of this the shipping cost is quoted at $38.  No, thank you … I canceled the order.  $120 for these items in order to receive them?

I’d rather golf naked

… which is probably one of the many reasons I find it so tough to find a playing partner.

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
wit@teamemerald.com
 #vaccinatetosave

 

A Look At The News | September 16, 2022

As of 10:02AM today

FedEx came out with some disappointing numbers last night … but even more worrisome were comments around the global economy (CNBC)

https://www.cnbc.com/2022/09/15/fedex-ceo-says-he-expects-the-economy-to-enter-a-worldwide-recession.html

With rates on the rise, borrowers are affected … but there is one big borrower facing a very big jump in interest payments … the U.S. government (FoxBusiness)

https://www.foxbusiness.com/economy/fed-interest-rate-hikes-poised-make-us-national-debt-even-more-expensive

Picking up groceries was about to get easier with “scan and go” shopping … but, while the thought was good there is one big problem that got in the way … shoplifters (CNN)

https://www.cnn.com/2022/09/16/business-food/wegmans-scan-and-go-app-shoplifting/index.html

Climate issues could be creating some pretty big problems in certain areas of the U.S. as coastal cities might find themselves quite wet in the coming years (CBCNews)

https://www.cbsnews.com/miami/news/scientists-warn-south-florida-coastal-cities-will-be-affected-by-sea-level-rise/

… but it is not only areas along the coast that have concern … as weather could affect farmers … along with those dependent on their crops (TastingTable)

https://www.tastingtable.com/1009904/projected-us-crop-yields-just-took-a-turn-for-the-worst/

… and this might especially be noticed during Thanksgiving … as mom might need to find a substitute for her family-loved cranberry recipe (TheSun)

https://www.the-sun.com/money/6232255/urgent-warning-thanksgiving-shortage-ingredient/

 

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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.