Good morning.

Stocks moved from positive to negative territory to start the day … and back again … and back again, once more … as we near the end of a week that might be described as quite a roller coaster ride for investors.

Top of the business news, of course, is the continuing battle between China and the U.S. as the Chinese government announced their tariff on U.S. goods will now be increased to 125% … yet they promise to go no higher … but does it matter?  I mean, let’s face it … over a certain amount makes purchases all but impossible … and while Kevin Leary (aka. “Mr. Wonderful”) feels it should be 400%, the percentage might no longer matter.  What I do find interesting is, watching “Shark Tank,” Kevin often tells participants they should consider manufacturing in China. His tune, of course, might soon change.

Just coming across the headlines is yet another disturbing note, as University of Michigan’s survey on Consumer Sentiment claims it “plummets to second-lowest level on records going back to 1952,” and lower than anything seen during the Great Recession.

Adding to the joy, Larry Fink of investment powerhouse BlackRock, released a comment with his own view that we are either very close to recession … or actually in one.

What is troubling in this whole thing is how quickly the economic mood changed, for even data prior to the April 2nd “Liberation Day” indicated things were finally on the right track … and inflation growth for March was shifting towards the Fed 2% target. But that information was studied 2 weeks ago which, frankly, now seems like an eternity.

According to the White House, the U.S. ran a trade deficit of $295 billion in goods with China in 2024 … but this now seems like a drop in the likely-imported bucket compared to the effect on markets both here and abroad.  Bloomberg recently reported tariff-induced global market losses to exceed $10 Trillion, which is greater than 50% of the EU’s GDP.

Investors are hoping tempers will cool this weekend and meaningful negotiations can take place.

Meanwhile, in a bit of good news, needed at the moment, an executive order was signed allowing for more water pressure in showerheads.

Believe it or not, I am pretty happy about this … because I feel there is nothing more relaxing than taking a nice hot shower while belting out a song.

And what is my favorite, when it comes to singing in the shower?

Duets.

Have a great day,

Joseph G. Witthohn, CFA

Have any questions? Please contact info@teamemerald.com

A Look At The News | April 11, 2025 As of 11:01 AM today: Pre-tariff inflation numbers showed the U.S. was heading on the right path … as March data got closer to reaching Fed target (CNBC) https://www.cnbc.com/2025/04/10/inflation-rate-eases-to-2point4percent-in-march-lower-than-expected.html   … but that doesn’t consider the skirmish that erupted in recent weeks … as both the U.S. and China are raising the stakes (CNBC) https://www.cnbc.com/2025/04/11/china-strikes-back-with-125percent-tariffs-on-us-goods-starting-april-12.html   Kevin Leary is very much in favor of tariffs on China … but he is looking past extra costs on goods as the claimed theft of “intellectual property” runs rampant (Mediaite) https://www.mediaite.com/tv/ive-had-it-with-getting-screwed-kevin-oleary-urges-trump-to-ramp-up-trade-war-with-china-even-further/   Europe is another matter entirely … as some exporters feel unfair rules are placed on foods coming from the U.S.  But the EU claims food regulation is all about safety (EuroNews) https://www.euronews.com/my-europe/2025/04/11/trumps-wrong-european-foods-safer-than-american-says-eu-safety-chief   A different battle is going on between RFK Jr. and vaccine makers … as scientists (and other health officials) are upset over RFK claims that, they say, are not backed by science (StatNews) https://www.statnews.com/2025/04/10/rfk-jr-single-antigen-vaccines-novavax-fda-decision/   Meanwhile, the Trump Administration is solving one problem … low water pressure in showers which … according to one claim … will shorten the time it takes for people’s hair to get wet (BBC) https://www.bbc.com/news/articles/cm2eeggyppzo 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. Emerald Asset Management PA, LLC | 717-556-8900 | 3175 Oregon Pike, Leola, PA 17540 Want to change how you receive these emails? You can unsubscribe from this list. ———————————————————————————- 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.