MidSouth Week in Review
March 19, 2021

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

Mar. 22, 2021 | RedChip Companies

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.




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



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