MidSouth Week in Review:
November 29, 2019

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

Dec. 2, 2019 | RedChip Companies


For the fifth consecutive week the major markets registered new highs.  The S & P technology sector has gained 41% for the year, putting the group on course for its biggest one-year advance since 2009.  The trade deficit narrowed sharply in October as both exports and imports declined.  Hope you have a nice Thanksgiving holiday weekend with family and friends – Buzz.

BuzzBits

 

A No Brainer – This week Schwab announced a merger with TD Ameritrade and a relocation from California to Texas.  The merger will reduce costs by 20% and the relocation could save 10% to 15%.  Corporate tax rates in TX are 0.75% vs. 8.84% in CA.  TX has no individual tax vs. a 13.3% top rate in CA.  The average monthly home rent is $3,870 in their home city vs. $1,200 at their new location – Wall Street Journal

 

Single Black Female – seeks male companionship.  Ethnicity not important.  I’m a very good looking girl who LOVES to play.  I love long walks in the woods, riding in your pickup truck, hunting, camping and fishing trips, cozy winter nights lying by the fire.  Candlelight dinners will have me eating out of your hand.  When you get home from work I’ll be at the front door wearing only what nature gave me.  Call (404) 555-1212 and ask for Daisy ….. Over 1500 men found themselves talking to the Atlanta Humane Society about an 8-week old black Labrador retriever – The Atlanta Journal

 

Biggest Bear Markets – since the end of WWII:  48% decline in 1973-1974, 49% decline in 2000-2002, 57% decline in 2007 – BTN Research

 

New College Grads – annual income vs. average debt:  MIT math majors - $120,000 income vs. $8,219 debt, Southern Cal masters in drama & theater - $30,800 income vs. $100,796 debt, Alabama theater major - $14,000 income vs. $25,000 debt, Georgetown Med School - $56,800 vs. $233,128 debt, NYU graduate program - $69,600 income vs. $387,660 debt, Columbia composition & writing - $28,556 income vs. $19,700 debt, Barry U. Law School - $36,200 income vs. $168,309 debt – Education Department ….. A coalition of advocacy groups are planning too soon file a lawsuit against the U. of CA, demanding that their campuses stop requiring applicants to submit SAT or ACT results for admission, saying the aptitude tests are inherently biased against the poor. – USA TODAY

 

Women Board Members – An analysis of 14 years of market returns across almost 1,900 companies recently revealed that when companies appoint female directors, they experienced two years of stock declines.  Companies saw their stock fall by an average of 2.3% just from adding one additional woman to their board.  The study suggests that investor biases are to blame.  Women now account for more than 25% of board members on the S & P 500 and 20% of boards globally – Bloomberg

 

The Revenue Act of 1935 – In the new deal, FDR imposed an income tax rate of 79% on incomes over $5 million.  The tax rate affected literally one person: John D. Rockefeller.  Rockefeller (1839-1937) was a philanthropist and voted for President Abraham Lincoln and supported the then-new Republican Party as he said, “God gave me money” and he did not apologize for it.  Rockefeller founded Standard Oil.

 

Church Attendance – A 2016 study found that women who went to any kind of religious service more than once a week had a 33% lower chance of dying during the 16-year follow-up period.  Another study published in PLOS One found that regular service attendance was linked to reductions of stress and mortality so much that worshipers were 55% less likely to die during the 18 year follow-up period than those who didn’t frequent the temple, church or mosque – JAMA International Medicine

 

Estate and Gift Taxes – are exempt on estates of less than $11.4 million and $22.8 million for couples, through 2025.  Bernie Sanders has called for the estate tax to kick in on fortunes of $3.5 million+ and has proposed rates as high as 77% vs. the current 40% rate – Bloomberg

 

Amtrak – set new records in 2019 for ridership, revenue and financial performance.  Passengers trips are up 2.4% and operative losses narrowed 83% to $30 million.  The better financial picture will allow them to invest in more high-speed trains, plus locomotives and a new type of passenger car – The Kiplinger Letter

 

Movie Review

 

About 20 years ago I was going to develop a movie app that would determine the probability of one liking a particular movie based on 13 personal questions such as age, sex, education, politics, etc.  Usually  only one or two of the items would be the determining factor as to whether one would like the movie.  Last week I saw The Irishman which was about Jimmy Hoffa during the 50’s – 70’s era.  It’s a well done historical movie about the head of the teamsters and featuring Al Pacino, Robert De Niro and Joe Pesci in the Martin Scorsese masterful crime epic.  I expect the three hour movie will be on Netflix possibly by next week.  https://www.belmontfilmhouse.com/showing/irishman ..... Frozen 2 opened to a record $127 million in the U.S. and $223.3 million overseas for a massive worldwide start of $350.2 million, the No. 1 global debut ever for an animated title ….. If you are going to a movie this weekend, get there early if you want to get a seat. - Buzz

 

buzz@msifund.com

 

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