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Good morning.

Well, it looks to be another volatile day that investors will face thanks to an inflation report this morning showing April’s CPI to be higher than anticipated.

Prior to the report, futures informed that we were heading for a positive open in stocks … but cold water quickly doused the flame and talk of necessary Fed action (and subsequent recession) quickly re-entered the minds of many an investor.  The CPI number for March (8.5% year-over-year) was supposed to come down … and April (at 8.3%) was, in fact, a decline … but finance lives in a world of expectations … and consensus was that 8% would be announced.

Why are we harping so much on inflation?  According to Daily Shot, it is viewed by small businesses as the single most important problem facing them today … and, as a result, small business expectations are reported to be in sharp decline.

While some don’t panic over the jump of food costs (replacing Stag’s Leap wine with Mad Dog 20/20), one place it is very much evident is in gasoline prices … which are now at an all-time record in many places.  If you really want to be shocked, look at the price of diesel.  The cost to transport goods is one that few think about … but it affects us just the same.   A year ago, we shared articles about the need for more truckers … though their futures could be limited thanks to self-driving rigs.  Now the concern is greatly heightened … as the independent trucker is facing a crippling cost increase … and … per second article below … these costs might remain high for some time to come.

Sorry … got long-winded there.  Market is putting me in a sour mood.

Probably my favorite (positive and fun) news story of the day is the last one below, where a not-so-good golfer (with whom I can relate) played in a U.S. Open Qualifying round simply by claiming he was a “professional.”  His score was ridiculously high (something like mine on a good day) but he … unlike his partners … had a lot of fun.

That about wraps it up for today.

I actually stopped by an Amish farm yesterday … saw a strange contraption called a “churner” … and asked the guy behind the counter how hard it is to make butter.

He corrected me and told me his specialty was Ghee.

I thanked him for clarifying.

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


A Look At The News | May 11, 2022

As of 10:01 AM today

Inflation numbers came in for April … and now are at levels not seen since the Carter years.  Ugh.  Will consumers button down the hatches?  (CNBC)

There are certain purchases that can be put off … but what about gasoline?  Record prices are hurting consumers … but if you see the price of diesel … you will understand trucker angst (CNN)

While the move towards green energy might seem to be moving along at a snail’s pace, it could happen sooner than we think … as 20% of electricity came from wind and solar in April (Electrek)

… while another thing that is no longer in headlines … but hasn’t gone away … is 3D printing … as a massive project has been started in China (PopularMechanics)

Are there some things you look for on Netflix but unable to find?  With a slight adjustment, you might get access to films targeted for an overseas audience … it just takes patience (StyleCaster)

… and if you get tired of just watching shows and decide to play with your VR headset … some add-on devices let you “sense” certain things … like spiders on your lips.  Yuck (MensHealth)

Would you like to play in a U.S. Open qualifier?  Just say you are a professional.  One guy did and his score was ridiculous.  A scary thing is he would probably beat me by a wide margin (Golf)


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.