While a morning inflation number shows continued downward movement toward the stated goals of the Fed, it only seems to warrant a smaller rate cut to be announced at next week’s meeting … causing some investors to move to the sidelines as equities jumped to an early morning decline.

Hoping for stronger cuts (due to a history of high borrowing need) are small businesses … which certainly need good news amid present concern.  Daily Shot shows a drop in something called the “Small Business Optimism Index” and cites the expectation of slower sales.  But this lack of enthusiasm might be short lived … as while a 25 bp (0.25%) drop might be seen as disappointing, market views are that rates will drop more than 2.5% by the end of next year.  Yet all the news is not so bouyant, as S&P Global is reporting 42% of institutions feel a mild recession (note the word “mild”) would take place sometime over the next 12 months … though, to be fair, only 2% feel it would be more severe than that.

What I wanted to bring up today provides a bit of optimism and hope.

I have often been accused of being something of a dreamer … looking at claimed society-changing items, promised to be introduced, viewing things while wearing rose-colored glasses.  An article included today allows for the introduction of a “humanoid robot” designed for the home.

Why am I so crazily optimistic?  There are a slew of companies (including Tesla) working on these devices right now.  With the fast and deepening introduction of “AI” (Artificial Intelligence) in our lives going on, improvements are appearing exponential.  Heck, less than two years ago at the Emerald Groundhog Day event, less than one-quarter of polled audience members (all from the financial industry) had even heard of AI … and now it seems to be part of every corporate discussion.

My view is that we will soon see humanoid robots in manufacturing businesses, restaurants, nursing homes and … yes … even in many residences … so set an extra seat at the table.

With the high price of groceries you’ll be glad your new friend doesn’t eat a lot.

Have a great day,

Joseph G. Witthohn, CFA

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