MidSouth Week in Review:
April 3, 2020

The S&P fell 2.1% for the week on a very news filled week.  Today the S&P declined on the news that a record 6.6 million filed for jobless benefits.  Last week Fed economists said that jobless claims could hit 32% in the 2Q.  The Dow had a record 23% decline in the 1Q and the S&P had its worst quarterly decline since 1938.  The trade deficit receded to its lowest level since 2016 as exports fell and imports fell more.  Mortgage rates declined to 3.3% from 3.5% with Moody’s predicting that 30% of home mortgages could default.  Crude had a record gain on Thursday of 25% after Trump said that he expected Russia and Saudi Arabia to cut production by millions of barrels a day.  Macy’s dropped to an all-time low on Wednesday after they were dropped from the S&P 500 and moved to the small cap index.  GM car sales fell 10% in the 1Q and Toyota, Honda, Hyundai and Mercedes-Benz reported March sales declines ranging from 37% to 50% - Sources: Wall Street Journal, New York Times

BuzzBits

Staying Positive – doesn’t mean you have to be positive all the time.  It means that even on hard days you know that there are better ones coming – Anon

From The LA Mayor’s Office – “Whatddaya mean I haven’t done anything for the homeless?  How about all those overpasses?” ….. The average LA commuter spends 119 hours, about three full work weeks, stuck in traffic – New York Post

Bad Markets – are always followed by good markets – Dick Davis

Free IRA Withdrawals – The coronavirus stimulus tax relief package allows you to withdraw up to $100,000 from your IRA and waive the 10% penalty for early withdrawal distributions – and repay in 3 years with a zero tax liability – MarketWatch

$1.99 Gas – The U.S. average has dropped to that level for the first time since March 2016 and could dip to $1.49 by mid-April, the lowest since 2004.  Several stations in Oklahoma and Wisconsin are charging 99 cents or less per gallon – GasBuddy ….. Gasoline demand has suffered it’s biggest drop ever – Reuters

Treasury Bonds – Don’t lock yourself into long-term Treasuries with ultralow yields.  The return on those may turn sharply negative if the virus panic subsides and rates rebound – The Kiplinger Letter

Coffee – Science has proved that drinking coffee helps improve brain functions and slows aging.  Now research at the University of Illinois shows coffee can also help you lose weight and body fat.  A number of studies also show coffee can reduce the risk of cancer up to 20%, your risk of Type 2 diabetes by 30% and your risk of Parkinson’s disease by 30% - INC.

Bonds vs. Stocks – Since December 1999, the Bloomberg Bond Index has returned 176% vs, a 149% for the S&P – FactSet

Playboy Magazine – The magazine announced that their spring 2020 issue will be their last printed edition.  Their first edition appeared in 1953 and featured Marilyn Monroe on the cover.  In 2016, they announced they would stop publication of nude images of women, but brought them back in 2017 and later started publishing bi-monthly as they began losing money – New York Times ….. It’s a sad event because myself and many of my friends were one-time readers of the magazine and their wonderful stories – Buzz

15 Years – Amount of time social isolation can potentially shave off a person’s life span – TIME

Dividend Paying Stocks – Goldman Sachs expects a wave of dividend suspensions, cuts and eliminations and that payouts could decline by 38% over the next nine months – Barron’s

College – Over a lifetime, college grads earn about $800,000 more relative to high school grads.  If you take out a lot of debt for a low earning major, the chances that it’s going to pay off are less than 50-50 – Kaitlin Pitsker

Shrinking Household Size – is 2.52 per family vs. 3.33 in 1960 – Census Bureau

New York City Home Listings – The typical listings in New York City for March is 1,780 homes, but only 734 properties have been listed.  The number of properties that have gone into contract is less than half the typical March figure – New York Times ….. Layoffs may prevent 40% of New Yorkers from paying rent – PropertyNest

Japanese Schools – do not employ janitors or custodians.  The Japanese education system believes that requiring students to clean the school themselves teaches respect responsibility, and emphasizes equality –

Grocery Store Shopping – Your concerns should be the risk of contracting the virus from other people, not from food or surfaces in the store.  Try to maintain a distance of at least six feet from other people – Dr. Lauren Sauer, John Hopkins University

Story Of Black Dot - https://youtu.be/p6oytXSqMJI

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.