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Good morning.

Stocks are rebounding after a fairly brutal day yesterday – especially in the world of tech – as higher borrowing costs struck fear in the hearts of many of those considering the effects of rising rates upon many a balance sheet.

One area especially hit hard has been cryptocurrencies … and those many grandiose stories of how some ballplayers are now taking salary in Bitcoin have, strangely, disappeared.  But mystery readers don’t need to worry … I figure that once Bitcoin moves up by 1 or 2%, some of those “million dollar value by the end of the summer” stories will appear once again.

Daily Shot put out a chart created by World Bank on “fertility rate” (the number of live births expected for women in the U.S. between the ages of 15-44) … and it is quite frightening indeed.  Back when I was born, the number was around 3.5.  Now it is less than half.  We place a great deal of worry right now on student loans … but I sense a bigger problem is going to be the amount of elderly people we will soon have in this country.  Some stories claim that only around half are prepared for retirement.  Sorry … but the hope of working until you are in your 80s just doesn’t work for most … for physical reasons.  Something’s gotta give.  And by the time we get around to talking about it, it may be too late.

After all, troubling things do have a tendency to happen when we ignore them.  One goal of the Paris Agreement was to keep world temperatures at or below 1.5 degrees Celsius (2.7 degrees Fahrenheit) above pre-industrial revolution numbers in 2050.  Oops. Now it seems the odds are 50/50 (article below) this will be reached within the next 5 years.  Those pointing this out are called “alarmists.”  Once this is breached (if it is) … what then?

On a final note, markets are still up today … but there is great concern over whether or not this is a “dead cat bounce” and further pain is coming.  But people have to ask themselves if they think we will ever again (and I emphasize the word “ever”) hit new highs.  Probably everyone thinks it will occur at some point which means that anyone with a 401k right now (or doing periodic investing) who hasn’t panicked and jumped into cash will benefit (via something in the trade known as “dollar cost averaging”).   I rarely give investing opinions but felt it was timely to do it here.

I reviewed markets over the last few months and remain shocked by what occurred … the old “markets take an escalator up and an elevator down” story.

And in looking at the numbers something dawned on me about the severity of the recent downtrend.

Over the last few weeks, I realize I actually saw more bottoms than my son’s pediatrician!

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 | May 10, 2022

As of 10:01 AM today

There is no kidding about one important thing … inflation hurts … especially since it results in having less money to spend on “other things.” (CNBC)

https://www.cnbc.com/2022/05/09/americans-say-inflation-may-have-a-big-negative-impact-on-goals.html

… but there is a group who were feeling pretty good about their investment in cryptocurrencies … that is, until the bottom fell out (CNBC)

https://www.cnbc.com/2022/05/10/bitcoin-btc-investors-panic-as-terrausd-ust-sinks-below-1-peg.html

Covid continues to spread though, fortunately, the highly contagious variants do not seem to be a death sentence.  Still, there is suffering and many continue to refuse the vaccine (NPR)

https://www.npr.org/sections/health-shots/2022/05/10/1091053850/the-number-of-americans-who-say-they-wont-get-a-covid-shot-hasnt-budged-in-a-yea

What does an oil company … claiming to change its ways … do with “dirty” products.  Sell them to someone else.  Then it’s their problem (but actually, it may be ours) (DNYUZ)

https://dnyuz.com/2022/05/10/oil-giants-sell-dirty-wells-to-buyers-with-looser-climate-goals-study-finds/

There was a goal of having temperature rise no higher than 1.5 Celsius of pre-industrial area temperatures by 2050.   This might be reached within the next 5 years (WMO)

https://public.wmo.int/en/media/press-release/wmo-update-5050-chance-of-global-temperature-temporarily-reaching-15%C2%B0c-threshold

So … you forgot to put your plastic in a recycling bin.  Don’t beat yourself too hard over it, as it probably wouldn’t have been recycled anyway (Smithsonian)

https://www.smithsonianmag.com/smart-news/the-us-recycled-just-5-percent-of-its-plastic-in-2021-180980052/

There are certain qualities an entrepreneur should have to increase the odds of being successful.  Yes, they give orders to their workers … but they should also be good listeners (Entrepreneur)

https://www.entrepreneur.com/article/423889

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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.