Good morning.

The morning inflation report offered no surprises … except for maybe the fact that there were no surprises.  It reported a very slight increase in inflation … as expected … with most comments continuing to call for the Fed to respond with a cut in rates … though what happens with rates beyond the end of the year appears to be murky at best.

Meanwhile, the S&P is up slightly … but not enough at the moment to allow claim that another new high has been reached.

What was interesting in Bloomberg news out earlier is a comment that small business optimism is “surging” and has reached a 3-year high, along with positive sales expectations and a boost in hiring plans.  Even so, many eyes are on the tariffs and China is already threatening currency manipulation (lowering the value of the yuan) to lessen the effects.

While tariffs might be considered a good thing by some, not everyone is convinced and Oxford Economics came out with the view that in the face of blanket tariffs, “everyone loses” … and that includes the Eurozone, UK, Japan, Mexico, Canada, China … and even the U.S.

Again, though, it is early … and no one really knows to what degree tariffs will be introduced or targeted.

I included a few articles on aging today, as while a growing number would like to “age in place” the fact is, according to Apollo, that the amount of us over the age of 65 will grow from around 16% presently to 23% by 2050. It might be important to realize that if you are over the present age of 40 … this means you!

What is an intriguing study … also regarding aging … relates to dementia and internet use, as there appears to be a remarkable slowdown in cognitive decline in those seniors who make wide use of the internet.  It is nearing Christmas, so what this tells me is buying a computer and getting elderly parents on it and hooking up to the internet might be more beneficial than just having it as a tool to keep them busy.

And speaking of planning for what may lie ahead … I am a little bothered … as in discussing a will last night with my wife, I mentioned my desire to be cremated.

All was fine … until I learned she made an appointment for next Wednesday.

Have a great day,

Joseph G. Witthohn, CFA

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