MidSouth Week in Review
October 15, 2021

For the week, the S&P rose 1.8% for its second consecutive up week.  13 years ago on 10/13/08, the S&P had a record gain of 11.58%.  Bank stocks surged as several large banks reported better than expected earnings.  The Social Security Administration announced a 5.9% increase for next year.  Oil prices jumped above $80 for the first time since 2014 and wholesale gas hit $2.49 from a $2.00 August low.  Copper surged from a $3.96 August low to $4.78 today, possibly on the realization that electric cars will require 4x more copper than gas autos.  Copper miner Freeport-McMoran surged from $31 last Wednesday to $39 today.  Jobless claims fell below 300,000 for the first time since the pandemic began.  Consumer prices rose 5.4%, for the biggest gain since 1991, with rent, food and furniture costs surging.  Nearly 4.3 million workers quit in August vs. 4 million in July.  Bitcoin rose to $61,000 vs. $41,000 three weeks ago , as investors are betting the first U.S. listed bitcoin exchange-traded fund is about to get the go-ahead.  Sources:  Wall Street Journal and New York Times

BuzzBits

Cash Flow – Stocks with low cash flow multiples outperform those with high multiples by better than four-to-one – Claudice Mott, Prudential Securities

So He’s Short – he can always stand on his wallet – Jewish Mother

Sell in May – Going back to 1950, the average Dow Jones return during the May 1 – October 31 period was only 0.4% vs. 7.5% during the November 1 – April 30 period – Stock Traders Almanac ….. Over the past 30 years, the S&P has averaged a 4.78% return over the October-December period which is a 20.5% annualized return – BTN Research

Flu – Globally, there are 3 million to 5 million cases every year and up to 656,000 deaths.  Every few decades, a new flu strain falls over from animals and lends to a pandemic.  Flu shots are typically 40% to 60% effective and in some years it’s as low as 10% - New York Times

Rainfall Shortage – The east has had plenty of rainfall recently.  Tennessee has been nearly 30% above normal over the past three years.  But in the West it’s a different story.  Lake Powell, the nation’s second largest reservoir, is only about 30% full and dropping and its water level has dropped 50 feet in a year.  Lake Mead, that provides drinking water for 25 million people from Phoenix to Los Angeles has recently cut its water supply by nearly 20% to Arizona – USA TODAY

The Bubonic Plague was the cause of the Black Death that swept through Asia, Africa and Europe in the 14^th century, and killed an estimated 50 million, including 25% to 60% of the European population – Wikipedia ….. World-wide Covid deaths to-date are approximately 4.8 million.

The First Letter – of every continent’s name is the same as the last - AmericA, AntarcticA, EuropE, AsiA, AustraliA, AfricA.

The 1% Earners – who earned $500,000+, represented 27% of U.S. household net worth vs. the 60% middle class who earned $27,700 to $141,000 and who represented 26.6% of national wealth in June – Census Bureau data ….. The top 5% of households own 71% of U.S. equities and the top 20% own 93% - Federal Reserve Bureau ….. The Biden administration has proposed raising revenues by cracking down on $7 trillion of unpaid taxes, mostly from the wealthy.  To find these funds, the administration wants banks to give the IRS new details on their customers and provide data for accounts with deposits or withdrawals of $600+.  Banks are not happy with the proposal – Wall Street Journal

In 1915 – the average annual income in the U.S. was $687 a year, equivalent to about 33 cents an hour.

Big TVs – Remember when a 50-inch TV seemed gigantic?  No longer.  By the end of 2020, 65 inch models overtook 55-inch sets as the most common screen size consumers saw in stores.  These sets are often sitting next to TVs with even bigger 75-or 85-inch screens – Gap Intelligence

Tax Tip – If your executor is also a recipient of your estate, specify in your will that they receive a set percentage of the estate as their fee.  Their commission will be deducted from the gross estate which will reduce your estate taxes.  Combined federal and state estate taxes can run up to 60% - Buzz

Obesity – 42% of the U.S. population live with it and 30% more are overweight.  This means 70% are carrying excess weight, a risk factor for more than 200 chronic diseases – Center for Lifestyle Medicine

Only In California – Last Saturday their governor signed a bill that would ban the sale of all off-road gas-powered engines, including generators, lawn equipment, pressure-washers, chainsaws, weed trimmers and golf carts.  Under the new law, these machines must be zero-emissions, meaning they must be battery operated or plug-in – LA Times ….. Nearly 130 colleges or universities in California will not require students applying in the fall to  release ACT or SAT scores – National Center for Testing ….. California Here I Come

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.