MidSouth Week in Review
December 3, 2021

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

Possibly over worries about the Omicron variant, the markets and tech stocks got hit hard over the past nine trading days.  The S&P declined 1.2% this week.  Bond yields had a big drop for the week as well as oil prices.  The consumer confidence index fell from 111.6 in October to 109.8, the lowest  level in 9 months.  The inflation rate rose above 6% in October for the first time since 1990.  Black Friday store traffic was up 48% vs. last year but still 28% lower than 2019 levels.  Natural gas declined from $6.50 in October to $4.05.  Sources:  Wall Street Journal and New York Times

BuzzBits

Daily Market Performances – The first day of the week rose only 44% of the time during the 1952-1989 period, while the other trading days closed higher 55% of the time – Stock Traders Almanac

Love You – One of the easiest ways to find out how many friends you have, is to buy a condo on the beach.

Stock Buybacks – by companies are a positive sign.  From 2010 through 2014, companies that bought back their stocks returned 149% vs. 93% for the S&P.  From November 2020 through August 2021, buyback stocks returned 55% vs. 38% for the S&P – Charles Schwab

Omicron – Most Omicron cases are mild or show no symptoms at all and existing shots should provide high protection against hospitalization and death – World Health Organization ….. Wednesday morning my portfolio was up 2% during the first hour; later in the day, the first Omicron case in the U.S. was announced and my portfolio in the general market collapsed.  Crazy!! - Buzz

Vets – If you had active duty military service earnings from 1940 through 2001, you may qualify for extra Social Security or increase the amount of your Social Security Benefit - https://www.military.com/benefits/veteran-benefits/special-military-social-security-rate.html

Until 1796 – there was a state in the U.S. called Franklin.  Today it’s called Tennessee.

Expensive Homes – may be getting even hotter next year.  The maximum size of home-mortgage loans eligible for backing by Fannie and Freddie are expected to jump sharply in 2022, to a baseline of about $650,000 in most regions (up from $548,000) – Wall Street Journal

Ouch! – To date, the Federal government has allocated $4.52 trillion in response to Covid-19, a figure that exceeds the entire federal budget in 2019 – New York Times

Sad Situation – Approximately 62% of Americans have less than $1,000 in their savings account and 21% don’t even have a savings account – Google

A Steal – In 1955, Ray Kroc bought franchise rights to McDonalds.  Desperate for cash, he offered several potential investor’s half the company in stock for $25,000.  By 1995, the stock would have been worth $5 billion.  Over the past 9 years, the stock is up 2.5x – Buzz

145 Years Ago – Yale defeated Princeton 2-0 in Hoboken, NJ in the first collegiate football game, played on Thanksgiving Day – PLANSPONSOR

Rich – Show me a man who gets rich being a politician and I will show you a crook – Harry Truman

Ostriches – weigh around 320 pounds, the same as two sheep.  They can run 40 miles per hour.  They don’t sweat, they pant and their eyeballs are bigger than their brains – New York Times ….. The average speed of a racehorse is 40 to 44 mph - Buzz

Tea And Coffee – in the morning is associated with a lower risk for stroke and dementia.  The risk for both diseases was lower for those who had 2 to 3 cups of coffee daily and for those who had 3 to 5 cups of tea – Tianjin Medical Center

Moviegoers – About 49% of pre-pandemic moviegoers are no longer buying tickets and roughly 8% have likely been lost forever.  In addition to Covid, other problems include rising ticket and concession prices – Quorum

Billionaire Warren Buffet – worked as a stockbroker in his early twenties, with a net worth of around $20,000.  His income grew alongside his career, to a net worth of $140,000 by age 26.  Savvy investments, including Bank of America, Apple, Coca-Cola and American Express helped his fortune continue to grow.  He reached millionaire status, a lifelong dream by age 30.  At 56, his net worth passed $1 billion – Jim Wilson, CPA

At Home – The financial industry employs 332,100 people in New York City.  Just 27% of the employees were going to the office daily in October – New York Times

The Year is 1920

Very interesting for all ages

The average life expectancy for men was 47 years · Fuel for cars was sold in drug stores only · Only 14 percent of homes had a bathtub · Only 8 percent of homes had a telephone · The maximum speed limit in most cities was 10 mph · The tallest structure in the world was the Eiffel Tower · The average U.S. wage in 1919 was 22 cents per hour · The average U.S. worker made between $200 and $400 per year · A competent accountant could expect to earn $2,000 per year · A dentist earned $2,500 per year · And, a mechanical engineer about $5,000 per year · More than 95 percent of all births took place at home · Ninety percent of all Doctors had NO COLLEGE EDUCATION! Instead, they attended so-called medical schools, many of which were condemned in the press and in the government as “substandard” · Sugar cost four cents a pound · Eggs were fourteen cents a dozen · Most women washed their hair once a month and used Borax or egg yolks for shampoo · Young women who wore short skirts, short hair, and listened to jazz were nicknamed “flappers.” · The American flag had 45 stars · A law was passed to allow women to vote · The population of Las Vegas was only 30 · Crossword puzzles, canned beer and iced tea hadn’t been invented yet · There was neither a Mother’s Day nor Father’s Day · Two out of every ten adults couldn’t read or write and only 6 percent of all Americans had graduated from high school · Marijuana, heroin and morphine were available over the counter at local drugstores.  Back then pharmacists said: “Heroin clears the complexion, gives buoyancy to the mind, regulates the stomach, bowels, and is a perfect guardian of health” (Shocking?) · Eighteen percent of households had at least one full-time servant or domestic help · There were about 230 reported murders in the ENTIRE USA vs. 238 in Memphis this year through October 4.

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