MidSouth Week in Review
September 25, 2020

The S&P was down 0.6% for the week, its fourth consecutive down week.  The Dollar made a two month high which caused gold to decline to its July level.  A shortage of homes pushed the median price of existing homes to $300,000+, up 8.5% vs. last year which was probably the reason the median household net worth rose 6.8% in the 2Q, to a record level.  Sales of new homes in August rose to their highest level in 14 years. 

I had possibly my biggest short-term stock gainer ever over the past week in Tuesday Morning, that went from a 28 cent low last week to a high of $1.52 today.  The retailer, that is in chapter 11 bankruptcy (reorganization), buys closeouts from other retailers, that are very cheap today.  I would rather be lucky than smart – Buzz

Sources: Wall Street Journal and New York Time

BuzzBits

Insider Buying – If you see one with a $150,000 salary buying $20,000 of stock, you can be sure it’s a meaningful vote of confidence.  That’s why I’d rather find seven V.P.’s buying 1,000 shares apiece than the president buying 5,000 shares – Peter Lynch

My Happiest Days – The day I bought my boat and the day I sold it – Fred Powell

AT&T – stock is unchanged over the past 25 years but has carried a yield of 4.5% over the same 25- year period and has a current yield of 7.5%.  The S&P has realized a total return of 797% over the same period - CHARTS

Flu Shot-Coronavirus – There’s no evidence that the flu vaccine can help protect you from the virus, but generally vaccines strengthen, not weaken, the immune system.  The more you’ve been vaccinated in recent years, the better trained your immune system is – David Beuther, National Jewish Health

Back To School – More than one-third (37%) of high school students report altering their path for higher education.  Among those who are setting a new course, 40% plan to attend community college to cut costs and 25% are taking a gap year – College Savings Foundation

Hotels – 74% of U.S. hotels say they expect to lay off more employees, with a whopping two thirds of properties warning they won’t be able to last another six months at the current projected revenue and occupancy levels – NorthStar ….. The exclusive 1,641 room Chicago Palmer House Hilton faces bank foreclosure after the hotel’s owner defaulted on its $332 million mortgage – New York Times

The Latino Population – is now 18.3% of the U.S. population vs. only 4.5% in 1970 – Federal Reserve Bank of St. Louis …..In Nashville, the group represents 10% of the population and 30% of the coronavirus cases.

Inheritance – If you have one child that is a good money manager, and one that is not, leave the good manager cash and for the other, have funds placed in a trust to protect him.  Also factor in loans and tuition that you provided in making the distributions – Wall Street Journal

Bad Situation – 14% of 5,631 Canadians killed by doctors last year asked to be lethally injected because of “isolation or loneliness.”  Other reasons for assistance was “inadequate control of pain”, and “perceived burden on family, friends, and caregivers.” – National Review

Used Car Sales – appear to have peaked as used car inventory since the first of the month has slowly normalized, so wait a few months before considering a purchase – Cox Automotive ….. On Wednesday, online car retailer Carvana jumped 35% after they projected record revenue and profit margins.  Carvana lets customers choose from more than 19,000 cars and complete purchases in as little as 10 minutes.  The company has never earned a profit since going public in 2017 – Wealth

Millennials – are predicted to be the first generation to be worse off than their parents.  39% of Millennials aged 25 to 37 have a bachelor’s degree vs. 35% of Baby Boomers.  According to a recent study, Millennials now have 41% less wealth than a similarly aged adult in 1984 – Pew Research

Crazy – “Lime Scooters could soon be outfitted with sidewalk riding protection and labeled with braille for easy identification for visually impaired individuals” – Tennessean

Only In California – In order to combat climate change, Gov. Newsom signed a bill Wednesday that aims to end the sale of new gasoline and diesel-powered passenger cars in the state by 2035 – Wall Street Journal

Wearing Glasses – may lower the risk of getting coronavirus.  At one China hospital, 94% of the coronavirus patients over a 42-day period did not wear glasses vs. the normal 60%.  In Wuhan,  few patients with eye glasses were admitted in the hospitals.  It may be that glasses act as a barrier, protecting eyes from the splatter of a cough or sneeze.  It also could be that those who wear glasses are less likely to rub their eyes with contaminated hands, and people who wear glasses tend to be older and more careful and more likely to stay home during the viral outbreak – New York Times

buzz@msifund.com

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