MidSouth Week in Review
November 11, 2022

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

Nov. 15, 2022 | RedChip Companies

On Wednesday the S&P surged 5.5% and the NASDAQ 7.3% on news that the October inflation rate beat estimates (7.7%) vs. 8.2% in September.  For the week the S&P rose 6.0%.  Tesla made a 2-year low on the announcement that CEO Musk sold $4B of his shares.  Bitcoin dropped to $15,799 from $21,400.  The yields on both the 5 and 10-year Treasury bonds fell below 4%.  The value of the Dollar declined from $114 to $106.  Gold hit its highest level since August.  A study said that 37% of real estate agents couldn’t pay their rent in October vs. 27% in September.  Sources:  Wall Street Journal and New York Times




In 1968 – Equitable Securities in Nashville was the second richest brokerage firm in the country.  Why?  The firm was the largest shareholder of American Express and held a large position in Holiday Inns – Buzz


Golfers – A recent study found that the average golfer walks about 900 miles a year.  Another study found golfers drink, on average, 22 gallons of alcohol a year, which means, on average, golfers get about 41 miles to the gallon.


50 Years Ago – The Dow surged to 1000 in 1972 but spent most of the next decade below 1000, compared to the 32,413 level now.  In 1970, only 15% of the population owned stocks vs. 53% in 2019 – Wall Street Journal


The Georgia Senate Race - $241 million was spent on the race which is the equivalent of $30.83 by every one of the 7.8 million eligible voters in Georgia.  The winner of the race was neutral.  They will have a runoff.


The 60/40 Portfolio – When stock prices fall, bond prices rise and vice-versa.  But not this year.  Those who put 60% of their money in the stock market and 40% into bonds are down 34% this year – Wall Street Journal


The Prohibition Era – began in the U.S. in 1920, which banned the manufacture, transportation and sale of intoxicating liquors.  Despite the new law, prohibition was difficult to enforce.  The sale of the illegal liquor boomed, known as bootlegging.  The law was repealed in 1933 – History.com


Turkey Meat – costs $1.99 per pound, up from $1.15 a year ago.  Turkey breast meat was $2 a pound two years ago vs. $6.50 today – MSN.com


California Powerball Winner – will take home the world’s biggest lottery jackpot of $2.04 billion.  The winner can receive the $2.04 billion in 30 annual payments, or a lump sum of nearly $998 million.  No winner has chosen the annual payments since 2014 – Wall Street Journal


Divorce – The price of legal services rose 7.4% in September from a year earlier, rising to $11,300.  Staying married is usually better for your finances (though not always your mental and emotional health), lawyers and financial planners say – Wall Street Journal


The Restaurant Industry – The industry is short 500,000 workers including waiters, cooks, and dishwashers.  7 in 10 restaurants do not have enough workers.  In a May survey, 41% said they couldn’t make the rent.  60% have cut hours of operation, and 93% have raised or plan to raise menu prices – The WEEK


Smoking – The smoking population in the U.S. has fallen to 13% from 21% in 2008 and 45% in 1954.  To compensate, tobacco companies have increased prices, raising 29.5% a pack during the 2015-2021 period to $7.22 from $5.57 – JAMA


New Home Sales – There were 130,000 fewer sold in September vs. the same time a year ago, a drop of 17.6%.  Sales of newly constructed homes dropped 10.9% vs. August.  The average wealth of the middle class had declined $27,000 to $393,000, a 7 % decline – Bloomberg


Used Car Financing – The average rate on a loan is now 16%.  Even borrowers with good credit are paying 9.2%.  And those are for loans with an average term of nearly six years – The Kiplinger Letter ….. The Manheim Used Vehicle index for October declined to 200 or about 10.6%, the worst decline since December 2008 when the global economy was melting down - ZeroHedge


Immigrants – The undocumented account for 23% of U.S. construction laborers and 38% of drywallers – The Washington Post


Heat Wave – The last eight years have each been warmer than all years before that period.  The rate of sea-level rises has doubled since 1993.   European glaciers are expected to suffer a record melt in 2022.  Greenland experienced rainfall, rather than snow for the first time in September – Wall Steet Journal


The material was prepared by MidSouth Investment Management LLC, and 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. 

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