MidSouth Week in Review
June 10, 2022

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

Jun. 13, 2022 | RedChip Companies

For the week the S&P declined 5.0%.  The yields on the 5, 10 and 30 year Treasury bonds all rose above 3%.  The value of the IPOs issued this year have declined 90%, dropping to $17.9 billion vs. $192 billion last year.  According to AAA, the average gas price has hit $4.92 vs. $3.05 a year ago.  Crude rose to  $122, its highest level since March.  Consumer sentiment fell in May to its lowest level since August 2011.  Mortgage demand falls to the lowest level in 22 years amid rising rates and slowing home sales.  This year Americans have filed 5.36 million new business applications, surpassing the record high of 3.5 million filed in 2019.  Sources: Wall Street Journal and New York Times




Not Now – Less than 1 of 5 Americans surveyed in April believe it’s a good time to buy a home in today’s market…..Applications for a mortgage to purchase a home fell 7% for the week and were 21% lower than a year ago – Fannie Mae


Missing Husband – Wife:  I have a bag full of used clothing I’d like to donate.  Husband:  Why not just throw it in the trash?  That’s much easier.  Wife: But there are poor starving people who can really use all these clothes.  Husband:  Honey, anyone who fits into your clothing is not starving.


Net Worth Increase – rose 62% over the last 5 years, raising from $92.7 trillion to $150.3 trillion as of 12-31-21 – Federal Reserve


Marriage Rate – in 2020 hit a low of 5.1 per 1000 vs. 6.1 in 2019 vs. 8.2 in 2018.  Half the couples planning to get married in 2020 postponed the nuptial until 2021.  Now women are expected to have 1.66 children over their lifetime which is way below the so-called replacement level fertility rate of 2.1 – Barron’s


Inflation Stocks – Shares in real estate investment trusts or companies in the real-estate business are not the best option.  Stocks in the materials and energy industries outperformed all others by a long shot – George Mason U. Business School


Gas Spending – Last week, 7.8% of total credit card spending were charges for gas vs. 6.4% in February.  All debit and credit card spending increased 9% over the year ago period – Dow Jones News ….. The states with the most expensive gas are: California ($6.34), Nevada ($5.49), Hawaii ($5.47) – USA TODAY


Caffeine – is the most widely used drug in the world.  An estimated 80% of Americans seek out a jolt every day.  Caffeine can sustain attention, speed up reaction times and boost memory.  Also caffeine contains compounds that may help ward off chronic disease and help you live longer – Harvard Medical School ….. Those who drank 1.5 to 3.5 cups per day were up to 30% less likely to die – Annals of International Medicine


Vice President Biden – “When the stock market crashed (1929), Franklin Roosevelt got on the TV and didn’t just talk about the, you know, the prices of greed.  He said, Look here’s what happened.” – Biden forgetting that FDR wasn’t President in 1929, nor was there TV.


Store Brands – A survey found that 35% of shoppers are turning to store brands to save money.  Store brands can offer a 20% to 30% savings.  The products are often processed in the same factory that produced the name brands – USA TODAY


Home Purchases – If you bought a home during the pandemic, there’s a good chance you think you paid too much.  Over one-third (36%) of those who closed on a home during the last two years feel like they overpaid – Money and Morning Consult


Stewardesses – In the old days they were all guaranteed to be good looking, young and single.  They could get fired at 32 for being too old.  Marriage could get you fired as could pregnancy vs. today when several are using their walkers to board the plane – Barron’s


Interest Rate Hikes – 93% of those on the Economic Advisory Roundtable believe there will be a 50-basis point interest rate increase in June – SIFMA ….. From 6-30-04 to 6-29-06, the Fed raised interest rates 17 times to 5.25%.  During that period, the S&P rose 15.7% over the two years – BTN Research


Longevity – The average American man lives to age 76 vs. 81 for the average woman.  Why?  Men are more likely to smoke, drink excessively and be overweight.  They are also less likely to seek medical help early and also more likely to be non-adherent to medical treatment.  Men are also more likely to take life-threating risks and to die in car accidents, brawls and gun fights – TIME


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. 

"I work with many of the companies that would be RedChip companies. And we certainly ascribe to the same view that the RedChip Companies do, which is Discovering Tomorrow's Blue Chips Today."

  • Bob McCooey, Senior Vice President, NASDAQ Stock Market