MidSouth Week in Review:
March 06, 2020

Wednesday, we had a Biden rally, after he became Super Tuesday’s big winner and the leader in delegate votes.  A month earlier, the Boston Globe had Biden in fifth place in the popular votes.  Sanders, who is popular with the younger voters, was hurt by an approximate 30% vote decline from the under 30-age group vs. the 2016 election.  The 4% Wednesday S&P gain was also helped by Tuesdays Federal Reserve cutting of its benchmark interest rate by 50 basis points and lowering the federal funds rate to a range of between 1% and 1.25%.  The primary purpose of the Fed cutting interest rates was to counter the damage caused by the coronavirus outbreak.  Hopefully the virus will diminish as the weather gets warmer.

 

Following the Wednesday Biden rally, the S&P declined 3.1% on Thursday and 1.7% today to close 0.6% for the week.  Kroger and Costco both rose around 18% from last Friday’s low as shopper’s stocked up in anticipation of the coronavirus arrival.  Crude declined to $41 a barrel, its lowest level since 2016.  The unemployment rate dropped to 3.5% vs. the 3.6% consensus estimate.

 

BuzzBits

 

 

 

Back-to-Back 3% Losses – has happened 10 times in the stock market since 1950.  The last one occurred last week.  During the previous nine occurrences, the S&P was up between 6% to 45% one year later, for an average gain of 22.85% – BTN Research ….. A couple of years ago a study showed that the average investor made only around 2% annually on their stock investments.  Why?  They bought at the top and sold at the bottom - Buzz ….. The current Fear and Greed Index is about where it was in December 2018 – four months later the S&P had appreciated 25%.

 

Headline – in the Washington Times:  Lead-lined coffins termed heath risk

 

10-Year Treasury Notes – hit a record low yield of 0.66% this week.  The notes have been trading in the U.S. since 1790, 230 years – Treasury Department ….. A $100,000 purchase of a 10-year note, would return the holder $660 per year which is the same amount that a $9,100 investment in Exxon Mobile would return in dividends - Buzz

 

Daylight-Saving Time – comes early Sunday morning.  It is good news for those who enjoy more daylight in the evening.  But experts say a growing body of evidence shows that the annual time shift is bad for our health, disrupting our circadian rhythms and sleep and leading to a higher immediate risk of heart attacks, strokes, atrial fibrillation and potentially car accidents – Wall Street Journal

 

Loophole – About a third of 16 to 19 year-olds hold jobs during the year, without taxable income.  They could take up to $6,000 of earnings and place it into a Roth IRA where the appreciated value would be tax-free when withdrawn – Kevin McKinley, McKinley Money LLC

 

Mortgage Rates – hit a record low of 3.13%, for the average rate on a fixed-rate 30-year mortgage, for borrowers with solid credit and a good down payment.  Mortgage refi’s spiked 15% for the week and Quicken Loans had record-setting volume on Monday and Tuesday as rates fell to a record low – CNBC ….. Brokers say they are locking in 30-year rates south of 3% for some customers – Bloomberg News ….. If you’re searching for a home this spring, get ready for a fight.  Bidding wars are likely because mortgage rates are low, demand is strong, and the amount of homes for sale is down – way down – USA Today …..In 1982, the rate on a 30-year fixed rate mortgage hit 18.63% - Freddie Mac

 

The Democratic Primary – Gone are the women, the black candidates, the Hispanic candidate, the gay candidate.  The Democrats are down to two major contenders, and they’re both old white guys – USA TODAY

 

Coronavirus – Of the reported 97,841 confirmed cases, no deaths were reported for those age 9 years or younger, 8% for the 70 to 79 age group and 14.8% for those in the 80+ age group.  The overall death rate was approximately 2.3% - World Health Organization

 

The New York Times – was nearly down for the count in 2014, but has since recovered.  They now have more digital subscribers than the Wall Street Journal, The Washington Post and the 250 local Gannett papers combined.  Their stock has nearly tripled over the period as they have added 400 employees vs. a 20,000 to 38,000 national decline for the industry – Ben Smith

 

Tom Steyer – dropped out of the presidential race Saturday after spending $3,373 per vote and earning zero delegates – California Globe ….. Steyer spent more than $250 million of his own money on his campaign, enough to buy 6,200 Teslas – Wall Street Journal ….. Bloomberg, who dropped out of the race on Wednesday, spent approximately $330 per vote and $11.7 million per delegate vote – USA TODAY

 

Iran – In 1977, their economy was 26% larger than Turkey’s, 65% larger than South Korea’s and almost 5.5 times the size of Vietnam’s.  By 2017, Turkey’s economy was nearly 2.5x the size of Iran’s, South Korea’s more than 7x and Vietnam’s has gone from less than 20% to 70%.  40% of Iran’s population earns less than $10 a day – Wall Street Journal

 

Coronavirus

 

Someone who graduated with a master’s degree and who worked in Shenzhen Hospital (Guangdong Providence, China) recently sent out the following notes on Coronavirus for guidance:

1. If you have a runny nose and sputum, you have a common cold.
2. Coronavirus pneumonia is a dry cough with no runny nose.
3. This new virus is not heat-resistant and will be killed by a temperature of just 26/27 degrees.  It hates the sun.
4. If someone sneezes with it, it takes about 10 feet before it drops to the ground and is no longer airborne.
5. If it drops on a metal surface it will live for at least 12 hours – so if you come into contact with any metal surface – wash your hands as soon as you can with bacterial soap.
6. On fabric it can survive for 6-12 hours, normal laundry detergent will kill it.
7. Drinking warm water is effective for all viruses.  Try not to drink liquids with ice.
8. Wash your hands frequently as the virus can only live on your hands 5-10 minutes but – a lot can happen during that time – you can rub your eyes, pick your nose unwittingly and so on.
9. You should also gargle as a prevention.  A simple solution of salt in warm water will suffice.
10. Can’t emphasize enough – drink plenty of water!

 

THE SYMPTOMS

1. It will first infect the throat, so you’ll have a sore throat lasting 3 to 4 days.
2. The virus then blends into a nasal fluid that enters the trachea and then the lungs, causing pneumonia.  This takes about 5 to 6 days further.
3. With the pneumonia comes high fever and difficulty in breathing.
4. The nasal congestion is not like the normal kind.  You feel like you’re drowning.  It’s imperative you then seek immediate attention.