MidSouth Week in Review
March 19, 2021

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

The Dow, S&P and Russell 2000 all made new highs this week.  Yesterday, the tech heavy NASDAQ 100 declined 3%, its biggest one-day decline in three weeks.  For the week the S&P declined 0.7%.  The yield on the 10-year Treasury note hit a 14-month high of 1.73% today.  Crude declined from 66 to 61 over weak European oil demand.  Worker jobless claims rose to 770,000 vs. 746,000 the prior week.  Sources:  Wall Street Journal and New York Times.

BuzzBits

Dividend Growth – accounts for about one-third of equity total returns since 1926.  When the dividends are reinvested, a Hartford Funds study showed that since 1970, 78% of total returns from the S&P are from the reinvested dividends.  The S&P Dividend Aristocrats (NOBL) includes stocks that have increased their dividends every year for at least 25 years.  Between 2010 and 2020, NOBL returned 14.2% annually – AAII Journal ….. NOBL is up 6.6% year-to-date - Buzz

Ouch! – A GoFundMe page set up to pay off the mortgages on Meghan Markle and Prince Harry’s $14.6 million California estate has gone bust, after raising a measly $110 – Heritage Foundation

Insider Buying – “There is no better tip-off to the success of a stock than the people in the company who are putting their own money into it.” – Peter Lynch, Fidelity Magellan Fund ….. “When top execs buy or sell shares in their own company, people looking for hot tips should take notice.” – Alexandria Peers, Wall Street Journal

Illinois Pension Debt – grew to $317 billion in 2020 vs. $261 billion in 2019, which represents an average debt load per citizen of $24,652 or $73,956 for a family of three.  Last year the citizens voted down a proposal to raise taxes on the rich, which many think will put their debt in the junk bond category – Zero Hedge

$100 in Bitcoin – in 2010 would have made you one of the richest people in America with a $10 million net worth today, up as high as 100% in the last two months – ID Coin ….. Last week Morgan Stanley disclosed that it would give wealthy clients access to Bitcoin funds – Barron’s

Federal Tax Return – The due date for the tax returns has been extended to May 17, 2021 vs. the usual April 15 deadline – Kraft CPA’s

Senator Bernie Sanders – as Chairman of the Budget Committee has proposed applying an additional tax on corporations that pay their CEO’s 50x that of the median worker.  If the average worker makes $15 an hour, the limit on what a CEO could  receive would be $1.56 million, without his company getting hit with an extra tax – Wall Street Journal ….. Elizabeth Warren and some other senators are co-sponsoring a bill that would add a 0.1% transaction tax on investors sale of stocks, bonds and other derivatives in an effort to curb risky trading ….. On Wednesday, Biden promised a tax increase on anyone earning $400,000+ - Financial Advisor

Life Expectancy Drop – from 2019 to 2020.  Hispanics 1.9 years – from 81.8 to 79.9, Whites 0.8 years – from 78.8 to 78.0, Blacks 2.7 years – from 74.7 to 72.0.  Overall 10 years from 78.8 to 77.8 – Centers for Disease Control

Stimulus Check Investing – In a recent study by Deutsche Bank, half of respondents between 25 and 34 years old plan to spend half of their Covid-19 relief payments on stocks – USA TODAY

Obesity – Roughly 40% of Americans have it.  A UNE study found that those with a BMI above 30 had a 113% higher risk of Covid hospitalization and 74% higher risk for ICU admission and a 48% higher risk of death from Covid – Obesity Reviews

Amazon – is expanding its telehealth service nationwide this summer.  Currently some companies will let you hitch up on Zoom with a doctor for as little as $35 and immediately have you signed up with a drug prescription at your pharmacy.  Amazon would sign up corporations and their employees would be able to talk to doctors on Zoom for free – Wall Street Journal

Chicago – is gun free yet over 1,500 have already been shot this year.  In Maine one can carry concealed firearms without a permit.  Today, Maine is the safest state in the union! Tell me again how gun control works – Anon

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.