MidSouth Week in Review:
June 11, 2018

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

The S&P closed up 1.4% for the week on a strong jobs report showing falling unemployment and more jobs being created.  Both the Nasdaq and the Russell 2000 made new highs this week.  Notably, the S&P 500 announced it would be adding Twitter (TWTR) to the index and will be adding Netflix (NFLX) to the S&P 100 Index.  Oil prices edged lower for the week and is down close to 10% from its May high.  The rally in oil prices earlier this year was due to supply concerns in Venezuela and Iran, and the recent weakness in oil prices has been due to weaker demand from China.  Have a Great Weekend!

BuzzBits

Financial Satisfaction – in America requires an average of $1.4 million up from $1.2 million last year, according to a Charles Schwab survey and $2.4 million to be wealthy.  When asked about what made respondents feel “wealthy” in their daily lives, the survey said that spending time with family (62%) was most commonly cited followed by taking time for myself (55%) – Wealth Management

Former Presidents – I have just received the following telegram from my generous daddy, it says.  “Dear Jack, don’t buy a single vote more than is necessary.  I’ll be damned if I’m going to pay for a landslide.” – John F. Kennedy ….. “I had a better year than he did.” – Babe Ruth, circa 1929, when asked how he felt about signing a contract that would pay him more than President Herbert Hoover.

Weed and the Brain – Marijuana can dampen motivation and interfere with a successful life, as well as lead to “tolerance, dependence, and craving: the hallmarks of addiction”.  Teens who smoke weed regularly, studies show, have reduced activity in brain circuits critical to noticing new information and making decisions; they are 60 percent less likely to graduate from high school, are at substantially increased risk for heroin addiction and alcoholism and are seven times more likely to attempt suicide – neuroscientist Judith Grisel, The Washington Post

We Love You, But! – it’s time to go.  45% of Millennials in New Jersey live with their parents, highest in the U.S. vs. 15.6% in North Dakota, the lowest – WalletHub

Cremations – It took nearly 100 years from the first cremation in the U.S. in 1876 to reach 5% in 1972.  In 2016 the cremation rate hit 50% and is expected to reach 64% by 2025 and 79% by 2035.  Western states have a cremation rate of 70%+.  Cremation requires an average cremator fee of $306, an urn for $200 and a space to hold the urn, with a total cost of around $2,000 vs. a casket cost of maybe $10,000 and around $4,800 for burial events – USA TODAY

Manhattan in 1947 – “All the young women dressed in black are secretaries.  They own one pair of stockings and they wash them out every night.  When walking on the sidewalk, never raise your hand and wave it around like you have the answer to a question in class because a yellow cab will stop, ask you where you’re going and try to take you.  Most people live in an apartment no bigger than a school classroom”. – Ann Barnett..… Kate Spade Bags – Manhattan girls got them in the ‘90’s for their bat mitzvahs, the bad girls swiped them from Barneys, swishing through the revolving doors with the illicit merchandise tucked inside their own Kate Spade bags.  Girls who did not have them pined for them; not wanting one was a statement in itself.  Priced between $150 and $450 in the 1990’s, they were aspirational, but attainable for some city kids – if you hoarded your babysitting pennies. – New York Times …..  55 year old Manhattanite Kate Spade committed suicide this week.

Birth Rates – “We’ve dropped below the ‘replacement’ fertility rate of 2.1 births for each woman of child bearing age to 1.7 births”, says Jeff Jacoby of the Boston Globe.  In Japan and other countries, plummeting birth rates have led to economic stagnation and social malaise with fewer workers to replenish a shrinking labor force and care for the elderly – THE WEEK

Mail Order Pharmacy – One highly recommended site is www.healthwarehouse.com.  It does not take any insurance, but it’s worth comparing prices vs. those you get through your insurance plan.  You might save money – BottomLine

Beer Trends – In 2006, 65% of alcohol consumed by the 21 to 27 age group was beer vs. 43% in 2016.  Millennial drinkers are shifting from beer to wine.  Bud and Bud Lite sales declined 6% in 2017.  Buyers have been turning to craft beers…..Tootsie’s Orchard Lounge in downtown Nashville will typically sell 11,000 beers on a Saturday night - Tennessean

Horse Racing

Attached is an article about myself from the 2004 Thoroughbred Owners and Breeders Association (TOBA) awards dinner that was held at a Sheiks horse farm.

I had had a couple of good years in the stock market so I thought I would give horse racing a try using my probability concepts.  Wrong!!  The only monetary return I ever got back was when my filly “Annsley Bear”, named after my daughter Annsley, went down at Churchill Downs and I got back some insurance money.  Investing in race horses is good for the ego but terrible on the pocketbook.  The breeders and trainers, who you never hear about, are the only consistent winners - Buzz

buzz@msifund.com

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