Investors are taking a “wait-and-see” attitude at this moment, awaiting this afternoon’s interest rate announcement by the Fed.
One thing we are all trying to digest is data on the number of job openings seen in March … which Daily Shot reports is at a record high. Is this a good thing or a bad thing? It depends. It is certainly a good thing for those seeking a job … but could be bad for both hungry employers and investors … as companies need workers and … regarding rates … it might give the Fed more “wiggle room” to raise rates without resulting in an employment upheaval.
According to the Bureau of Labor Statistics, there has been a lot of people quitting jobs … with quite bit of this due to “job switching” as the claim is that while those staying in positions received a bump in pay, it was even more lucrative for those who moved on to another position or company.
Still, as pointed out by Alpine Macro, the concern is whether or not these pay increases are enough to keep up with inflation. At the moment, it doesn’t seem to be … though the inflation trend seems to have peaked (yes, famous last words).
Back to the Fed, the increases might not be as severe as many thought a few weeks ago. Capital Economics provides the view of a 50 bps (0.50%) increase to be announced both today and in June with a slowdown to 25 bps through the end of the year.
The market pullback has seemed worrisome, of course, but LPL Research is quick to tell us that – going back over 40 years – the decline we have seen so far from S&P highs is only “average” from what is seen on an annual basis … though it sure doesn’t seem that way.
And … before I forget, Emerald has an “investment forum” tomorrow in downtown Philadelphia – so please say “hello” if you attend. You won’t be able to miss me. I’ll be the one wearing the mask.
On a final note, I am making plans to go to Europe for a few days this summer and definitely want to stop in Scandinavia.
I went there once before and tried without success to visit the Swedish home of Yngue Ericsson, the man who put fluoride in toothpaste.
I was unable find the exact location.
There was no plaque.
Have a great day,
Joseph G. Witthohn, CFA
Emerald Asset Management PA, LLC
610 Freedom Business Center Drive
King of Prussia, PA 19406
Direct: (610) 285-9905
cell: (856) 625-7915
As of 11:52 AM today
Maybe people have taken the recent virus as an excuse to do some self-assessment as to their happiness and careers … as we are still quitting our jobs in record numbers (DNYUZ)
Will inflation soon come down? Some think the peak has been hit and a downward trend has started … but the big questions will be how fast the trend will be … and for how long (TheStreet)
One of the side effects of getting Covid – and, fortunately, not all appear affected – is cognitive decline … which is why even with a decline in deaths, it remains a concern (NeuroscienceNews)
… and health organizations, such as the CDC, recommend masks continue to be used in public areas – including planes (APNews)
… and a few organizations – such are Air BNB – continue to allow certain employees to continue to work from home … forever, if they want (CNN)
While too early to get excited about … as drugs sometimes show early promise and then fail during field testing … one natural ingredient could be used to fight breast cancer (TheBrighterSide)
Don’t ever let someone tell you entrepreneurism is dead in this country. A homemade vending machine for cannabis? Ingenious … and also pretty illegal (Fox2Detroit)
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.