I was in Costco this weekend (as I am most weekends) and, as I walked down one aisle, saw a man painstakingly picking up a 25-pound bag of flour to put in his cart. Trying to be friendly (though keeping my distance while smiling through my mask) I said “that must be one heck of a cake you are making.” He looked at me and commented “where do you think prices are going?” … and then told me, for the next 5 minutes, how he prepared Mason Jars … which would “keep the flour fresh for 20 years” if he needed to.” Oh my.
Has it come to that? You might think so with many of the comments seen in business news over the last few days.
Fortunately, the worst (regarding inflation) might be nearing an end. Daily Shot is reporting smaller wage gains and asks if companies are hitting limits on their pricing power. It seems we are adjusting … finding “substitute goods” when prices of favorites get too high … alongside clues that appear to show the rapid home price increases of late will either pause or even, possibly, tumble.
Still, the thought that inflation might slow … and that the Fed might not raise rates as much as feared … is presently of little comfort to investors who have seen portfolios torpedoed in the face of the recent market downturn that continues this morning … as we are seeing yet another early decline in stocks.
Yes, I heard all the things that keep many an investor up at night and there certainly seems to be so many things to be concerned about right now. I keep coming back to the old saying that “Wall Street climbs a wall of worry.”
Well, with inflation, recession, Ukraine, climate concerns, political unrest and even supply shortages there is certainly plenty to be worried about right now.
I just don’t know when investors will comfortably feel it is time to once again try to ascend that wall.
I hope it is soon
… or else I might find myself back at Costco reassessing whether or not that 25-pound bag of flour is actually a wise investment after all.
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 10:01 AM today
A warning is out that as many of 100 million new infections might occur this coming fall … but note it assumes no new funding … and the statement could be a tactic for more dollars (SILive)
… but the virus is not the only thing to worry about. We know that inflation is a problem, but in other areas of the world the situation is much worse … and could lead to rioting (CNBC)
With the sourcing of some grains in question (due to the war) some turn to seafood as a reliable food … but even this is in disarray as we learn climate change is having an effect (EurAsiaReview)
… and the view that we will wean ourselves off of fossil fuels and go solar? While it sounds good, it doesn’t seem practical … as the industry is in a “state of chaos” (MorningBrew)
Do you hate having to use passwords when you sign on to certain sites? Well, their days might be numbered … as “passwordless” logons are starting to appear (TheHustle)
If you are one of those using an “Oculus Quest” and getting bored with limitations of content, this might excite you as an upgrade … a major one … is now available (TomsGuide)
Are you thinking of where you might retire? Instead of looking at states and communities, you might want to look toward the ocean … where a few are spending their final days (CNBC)
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.