Many wonder how the world will be once we get on the other side of this

Good morning.

Oils well that ends well.   Okay, I tried to be funny with that statement but there is nothing funny about the sharp drop in oil prices and its effect on stocks (and jobs) and, well … an entire industry.

As my friend Ray Hally of Bancroft Capital pointed out in an email note this morning, “Concern around the world is running out of places to store crude and with most of the world locked down there is not much demand.”   And the situation in our own country mirrors that seen around the globe as one CNBC headlines screams that “US oil prices on pace for their worst day ever as storage runs out.” You might think low oil prices are a good thing … with reduced gas prices and all … but there is a point below where this is problematic … and it certainly appears we’ve reached … and might actually be below … that point.

There is a lot of chatter about “opening up the country” again … and there are very sound arguments on both sides … but one thing that I find most concerning is spelled out in the second article below where Time points out that “health care workers are dangerously ill-equipped to fight COVID-19.” Fact-of-the-matter is that a majority of survey respondents claim in the article having less than a one week supply of masks, gowns, thermometers, sanitizer, disinfecting wipes and other items. And that is from hospitals. You can imagine that nursing homes, local EMS, police departments and other first responders are in much worse shape. Many local groups (and manufacturers) are doing their best to help … including the Emerald Foundation … and while making a dent … they are certainly fighting an uphill battle.

Of course, many wonder how the world will be once we get on the other side of this. There are some making the case that supermarkets should be “pick up only” for a while and restaurants – if they are still open – could find tables so spread out that your masked waiter will have fewer tables to service (as he hands you a disposable menu). How long will the social distancing last? One article below claims it will remain until 2022! Yikes!

How am I spending social distancing? Trying to figure out some new things online. I just tried Instagram for the first time … as it does not appear to be as heavy on the politics as Facebook and Twitter have become. But let’s give it time. I have every confidence in the world that people will ruin this one too.

Well, today is 4/20 and “stoners” use this day as an excuse (as if they needed one) to light up … causing many to wonder how this date became synonymous with this. While rumors are all over the place, it seems the origin is traced back to 1971 and a group of high school students. The last story below, from Time, tells the tale.

On a final note, I will venture out shortly for a little bit … but if our paths cross there will be no hand shaking or giving hugs. You may bow or give me the finger …

… your choice.

But in either case, it would be great to see you.

Have a great day,

Joseph G. Witthohn, CFA

Vice President

Emerald Asset Management PA, LLC

610 Freedom Business Center Drive

King of Prussia, PA 19406

A Quick Look at the News

… as of 10:10 AM today …

Oil prices are crashing … and while some might be glad to pay lower prices for energy, this could bring a halt to money-losing oil production … costing jobs by the plenty (CNN)

https://www.cnn.com/2020/04/20/investing/premarket-stocks-trading/index.html

One of the biggest debates right now is “opening up the country” too fast … as it appears that the shortage of PPE (Personal Protective Equipment) is putting many at risk (Time)

https://time.com/5823983/coronavirus-ppe-shortage/

In the midst of crisis, heroes arise … and Fortune praised 25 of those who have risen above the fray surrounding the virus. It is not only individuals. Grocers are included. Great story (Fortune)

https://fortune.com/worlds-greatest-leaders/2020/

… and what caught my eye with the previous mention was that I already meant to include Jose Andres today anyway … who always seems ready to help whenever there is a need (CBSNews)

.

https://www.cbsnews.com/news/jose-andres-chef-feeding-coronavirus-impact-60-minutes-2020-04-19/

How are we doing with “flattening the curve?” This article points out “the only way to halt this pandemic … is to starve it.” Will we be successful? (Time)

https://time.com/5809038/coronavirus-flatten-curve/

… as many are getting tired of the social distancing. While some feel we can do it for a bit … others think it might be needed for (are you sitting down?) another 18 months (WeForum)

https://www.weforum.org/agenda/2020/04/coronavirus-social-distancing-how-long/

I have heard from some small business owners that they were “shut out” of the last stimulus package as big firms took some/much of the money. One firm is returning theirs (FoxBusiness)

https://www.foxbusiness.com/markets/shake-shack-to-return-10-million-government-loan

Meanwhile, today is 4/20 … and this somehow got equated with cannabis. How did this come about? Here is how the term became popular before viral was a “thing” (Time)

https://time.com/4292844/420-april-20-marijuana-pot-holiday-history/