We made it through another week without the world collapsing, but there was enough new news to keep people busy.
The CPI and PPI came in cooler than projected.
That is not to say that inflation is over.
CPI is below 6%, but it is far above the target of 2%.
The argument is out there that the Fed will raise the Fed funds rate at the meeting in May will be a 25-point increase.
Some of the argument for no further increases after May is that the financial situation will do the Fed’s work for them.
As banks tighten their ability to lend, it will in fact be a governor on the economy.
Should you not believe then look what has happened to the housing market as interest rates have climbed.
I noted in a precious column that I like Charles Schwab as a possible value stock.
Not so much as I would use the term in the past, but a stock that has been punished more than was necessary.
The logic of those who have shunned the stock is that people who had money with Schwab will move whatever cash they have with the brokerage company out of low-paying money market and into such things as Treasuries or other higher yielding choices.
The low-paying money market was a real earnings tool for Schwab.
I would point out that this is happening in the stock market as well.
Many took their cash and placed it in government-backed debt for safety, plus getting a higher yield.
None of this will change my belief that Schwab is an example of throwing the baby out with the bath water.
Schwab is not SVB or First Financial in any way.
The big news over the weekend was the interview on 60 Minutes with the CEO of Alphabet aka Google.
The subject was AI and the impact that AI will have in the future.
I have a son that writes programs for a nursing college in the Midwest so that students can taking nursing classes on line.
It is where college is headed for no other reason than the cost of going to bricks and mortar universities.
The college he works for is helping hard working students earn their LVN, RN and PA degrees while being able to work full or part time.
All this and a significant savings.
This is all said to remind you that things change.
Change is not bad if you adapt.
Look what cell phones have done to this world.
Some would say it is ruining our younger generation, but the phone is just the tool.
Social media is the real culprit in that theory.
Having a portable computer at your fingertips is such an advantage.
It can be distracting, but it is a production enhancer.
I seems that AI will be the same.
The rub comes for those in the service industry who likely will be replaced by AI used in robotics.
Here is where you use education to adapt and prosper.
There is no going back my friends.
