Good morning.

We are back to good news being bad news … at least, as far as investors are concerned … for payrolls grew much more than expected …and markets headed south immediately upon the release.

This, of course, puts some traders in an ethical dilemma … I mean, do you hope that people lose jobs … which might have a positive effect on your portfolio … or do you feel glad people are finding plentiful work at the moment … even though it may be costing you real money (on paper)?

I came in on a red-eye flight last night and am a bit exhausted.  But that wasn’t the worst part about flying cross-country.  For one leg of my journey, I was placed in a middle seat. On top of that, I got an American Airlines credit card which I was told gives me “priority boarding” … but I was one of the last ones on the plane as I found myself behind people who paid even more to have “more senior priority.”  What a racket.

Sorry for griping.  But at least my bags were free.

The fires in California continue to burn … and the most recent number I’ve seen is an estimate of $150 billion in damages.  While the thought is that insurance companies will suffer due to this so soon after the recent flood in the Carolinas … many who live outside of these areas will look at their polices and assess their own risks.  And insurance companies will … eventually … pass losses on to customers … something they are very good at.

Meanwhile, we might have some tough sledding for a bit as Bloomberg is reporting long-term inflation expectations to be rising. At the moment, it certainly is warranted to question if inflation will ever again fall to a level even close to the Fed target.

There just doesn’t seem to be a lot of confidence out there now.

Earnings season is scheduled to begin in earnest the middle of next week. It really can’t come fast enough.

That wraps it up for me today as I am taking part of the afternoon to continue training a puppy.

You know, dogs aren’t the only animal you can train.

I had a goldfish once that could breakdance on the carpet

… but only for like 20 seconds.

Have a great day,

Joseph G. Witthohn, CFA

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