Good morning.

There was a popular game show a few years back by the name of “Password” … in which a one-word clue was given, and the contestant would need to guess the “mystery word” to win prizes. Well, if the game was played today, I think the clue given would be “fickle” … while the correct reply would be “investors” … for each little bit of new data seems to create a sharp, immediate response in opinion (and investment action).

Driving investor reaction over the last couple of days seems to be a combination of good news on inflation and a jump in weekly unemployment claims … as Bloomberg reports this resulted in a slight increase in rate cut hopes by “the market” … whatever that means.  But if you don’t agree with that assessment, don’t worry … as views will probably change in the next week … or the next day … or even in the next hour … as there is always an endless supply of information upon which to build a story.

Have you walked into a store lately only to find a desired item locked behind some cage?  A few weeks ago, I wrote about my own experience in Target … regarding a pair of socks (obviously in high demand among thieves).  It seems companies are now realizing this does not only keep criminals from pilfering items … but customers also become less likely to buy something locked away … probably not willing to wait the 10 minutes or so to track down someone with a key.  Stores such as Walgreens (second-to-last story below) are trying to find other ways to combat the theft problem.

While we have all seen articles on the economic effects of the wildfires in California, there is something few have written about … and that is how the lives of some laborers will be affected.  If you’ve been to California … you’ve seen the many workers … the “pool cleaners,” “landscapers,” “housekeepers,” and such.  While there will be quite a call for help once rebuilding starts, there will be little to no call to employ people from these groups in many of the homes destroyed. We tend to focus on those who have lost physical property … but the damage goes far beyond that … and for many (uninsured) the indirect losses are staggering.

My final point today concerns something I find rather unbelievable and quite bothersome … as the FDA is finally getting around to banning food additive “Red Dye No. 3” (last note below). Why would they do this?  The minor reason (sarcasm) is that it is shown to cause cancer in laboratory animals.  What?  This has long ago been seen as a potential problem and already is banned in Europe (30 years ago!), Japan, China, the UK, Australia and New Zealand … while it is included in the U.S. in over 2,000 foods!  But don’t worry … this won’t take effect for a few years so we can continue to enjoy our redness for a while.

That will end my note on this little-changed market day … so I can go back during my lunch hour and finish watching an incredible PBS show I started last night.

I thought it would be boring but was just the opposite … and had me hooked.

It was all about the behavior of beavers …

… and might be the best dam documentary I’ve ever seen!

Have a great day,

Joseph G. Witthohn, CFA

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