MidSouth Week in Review:
August 09, 2019

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

Aug. 12, 2019 | RedChip Companies


After a quick 3.6% decline on Monday, the S & P rose 1.9% yesterday, its biggest one-day advance in two months, to close down 0.4% for the week.

 

The 10-year Treasury yield fell to1.6% from last year’s high of 2.23%.  One reason yields are falling in the U.S. is that funds are flowing in from out of the country, where 25% of outstanding bonds have negative yields.  Germany’s 30-year bond-yields turned negative yesterday.  A Danish bank is now offering mortgages at a 0.5% negative interest rate (they pay you to have a mortgage).  Because lower interest rates hurt bank margins the regional bank index (KRE) declined 12% from last week’s high.  Economic uncertainties caused gold to hit a six-year high at $1,500 and Bitcoin to hit $12,000, up 28% from its level two weeks ago.

 

BuzzBits

 

Earn $50 to $3,500 – for opening a brokerage account.  Merrill Edge pays $100 for accounts of $20k+ … to $600 for accounts of $200k+.  E*trade rewards $200 for $25k+ accounts … to $2,500 for $1 million+ accounts.  Ally Invest offers up to $3,500 for $2 million+ accounts – Arielle O’Shea, NerdWallet.com

 

The Young Deadbeats – “Why all this talk about the younger generation going to the dogs with fast living?  How about us young folks who are trying to lead a decent life?  How do people think we feel being included in that sweeping statement, “the younger generation?”  Don’t they know that it makes us wonder at the futility of trying to be good when someone is always lambasting us?  I think that the heart of every fast-living person is a hurt caused by a lot of criticizing, and deep down in the hearts of a lot of older folks is a jealousy that young people are progressing further than they were able to”. – 1928 letter to columnist Dorothy Dix, during the ‘roaring twenties’, one year prior to the 1929 stock market crash and the beginning of the “Great Depression”.   

 

670% Return – if one had bought the SPDR S & P 500 ETF (SPY) at the close of trading and sold it on the opening the next day, excluding dividends, since 1993 vs. a 11% loss for someone who bought at the opening and sold at the close the same day – Bloomberg

 

Gun Death Stats – There are about 30,000 gun deaths per year.  Of them, 65% are by suicide, 15% by law enforcement officers, 17% are unrelated (criminal activity, gun and drug related or mentally ill persons), 3% are accidental.  25% of all gun deaths occur in four cities; Chicago (9.4%), Baltimore (6.7%), Detroit (6.5%) and D.C. (2.3%).  In the other death category: 40,000 die per year from drug overdose, 36,000 die from the flu, 34,000 die in traffic fatalities, 200,000+ die from preventable medical errors and 710,000 die from heart disease.  5,000 die annually from gun violence – Miles Long

 

Uber – stock declined 10% today on the announcement of a 2Q loss of $5.5 billion.  In Q1 2018, Uber lost 42 cents per trip on 1.1 billion trips, lost 67 cents per trip in 2019 1Q on 1.6 billion trips and lost 77 cents per trip in 2Q on 1.7 billion trips – Activity ….. Uber has a $74 billion market valuation.

 

Binge Drinking – is defined as consuming five or more drinks in a sitting for men and four for women.  Over 38% of college-aged adults, 18 to 25, have recently drunk excessively, the highest of any group.  Heavy drinking is rising among older Americans.  Women are more susceptible to alcohol related problems than men – New York Times

 

Scamming the System – In 2011, an Illinois company found a way to greatly reduce in-state college costs for middle to higher income families by $30,000 to $40,000 annually.  Over the last two years of high school, the families would legally transfer guardianship of their kids to a friend or family member so that the kids could be considered independent for purposes of legal aid.  Total college cost for Illinois range between $32,000 to $36,000 annually.  The fee charged by the consulting firm was $5,000 – Wall Street Journal

 

Bye Bye Umps - The automated strike zones made its debut at an All-Star baseball game in Connecticut last month with excellent reviews.  It works this way:  MLB’s TrackMan radar system judges each pitch and sends the call – “Ball” or “Strike” in a male voice through a wireless earpiece to the home plate ump, who simply repeats the call.  This innovation has almost completely eliminated arguments between umps, managers and players – New York Times ….. According to a recent Harvard study, major league baseball players live 24% longer than the average male.  One player said he thought better fitness could be the explanation.  “We’re exercising our entire bodies every day, for 162 games.  It’s the longest season in sports.”

 

Russian Debt – is approximately $4,600 per person which represents approximately 57% of the average citizens yearly income of $8,040.  Loans are very easy to obtain in Russia because the average interest rate charged ranges from 12% to 19%, depending on the length of the loan – Central Bank of Russia Federation

 

buzz@msifund.com

 

 

 

This material does not necessarily represent the views of the presenting party, nor their affiliates.  This information has been derived from sources believed to be accurate.  Please note – investing involves risk, and past performance is no guarantee of future results.  The publisher is not engaged in rendering legal, accounting or other professional services.  If assistance is needed, the reader is advised to engage the services of a competent professional.  This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.  This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such.  This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested.  All economic and performance data is historical and not indicative of future results.  Market indices discussed are unmanaged.  Investors cannot invest in unmanaged indices. 

 

 

 



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