I found the most interesting comment on global markets this morning in a Bloomberg article pertaining to the rise in European markets following yet another anti-establishment vote … this time in Italy. If you recall, market participants had a wave of temporary panic following the Brexit and Trump votes … so the reported quote from the head of trading at MPPM EK was quite appropriate with regard to those for whom knee-jerk reactions are common as he said: “After Brexit, it took three days for markets to shake it off (could this have been foreseen in the ftse forecast), with Trump it took three hours, with Italy it took three minutes.”
Meanwhile, U.S. markets opened the week on a positive note as oil moved above $55/barrel for the first time in 16 months … thanks to the recent OPEC move to curtail production. Still, you have to wonder about the long-term situation with oil … as the transportation industry advances both fuel-efficient vehicles and increases plans for electric cars to hit our nation’s highways in the years to come. With companies like Intelligent Car Leasing already moving into the electric car world, it can only be a matter of time before the majority of cars on the road are electric too.
But it might not only be the rise in oil that is driving U.S. markets today … as the economy continues to show signs of improvement. A report just crossed the wires with the Bloomberg headline of: “Service Industries in U.S. Expand at Fastest Pace in 13 Months.” The article goes on the state that this exceeded all forecasts by economists.
For those who were looking for signs that the economy is continuing to strengthen during the early part of December, I can only say one thing. It’s beginning to look a lot like Christmas.
On a final note, American Airlines ordered recently-new uniforms to be recalled after 1600 claims of illness related to the new apparel.
I know I pick on airlines a lot as I have had some bad experiences on airlines in my career.
The worst was the day when, on a flight that was not full, I asked to have my seat changed when I found myself sitting next to a screaming child who was ridiculously out of control … and the stewardess wouldn’t let me move.
It seems the rule is they won’t let you change your seat if the child is yours.
Have a great day.
Joseph G. Witthohn, CFA
Emerald Asset Management
A Quick Look at the News
December 5, 2016
Joseph G. Witthohn, CFA | firstname.lastname@example.org
… as of 10:09 AM today …
The Italian referendum loss this weekend threw another monkey wrench into the stability of the European Union but no one seems to have come up with an alternative (to the EU) that makes sense (CNBC)
… but things always seem to change … be it political regimes or even the way we use things. With electric cars on the horizon there is even a discussion that gasoline use might soon be on the decline (Bloomberg)
So … you … or at least, your kids … attached themselves to the Pokemon Go craze … which seems to have settled down. Fear not … another hit is coming our way … and could be at least as large (Bloomberg)
Are we soon to see a wave of automobile repossessions? There are around 6 million Americans late on their auto loan payments … with a strong belief that this number will get worse (MarketWatch)
Do you have friends thinking of retiring in the next year? If so, you will want to share this article with them as many retire first and then start planning … when it should be the other way around (USNews)
… for it is always helpful to write down goals. I certainly do … though some days I forget to look at my list … and, sadly, that night see the intended things I did not accomplish that day (Time)
… and it is finally here … a list of things to eat if you don’t move around much during the day. Why do I like this? Well … I figure I can keep all these items close at hand and, therefore, have no excuse to go anywhere at all (Time)