MidSouth Week in Review
December 3, 2021

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

Dec. 6, 2021 | RedChip Companies

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




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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