MidSouth Week in Review
November 30, 2022

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

Nov. 28, 2022 | RedChip Companies


The S&P was neutral on Black Friday, up 1.5% during the holiday shortened week and up 15.3% from the mid-October low.  During the week, crude hit its lowest level sine last December.  Tesla dropped to 168 from its 313 September high.  Mortgage apps declined 40% from their January high.  Natural gas soared to $8.20 from its October $4.81 low.  The markets closed today at noon CST.  Sources:  Wall Street Journal and New York Times

 

BuzzBits

 

Dividend Payers – are a surprise winner amid this market turbulence.  For the year through the end of October, the Morningstar Dividend Yield Focus Ines returned nearly 2% vs. a decline of 19.2% for the broad market – Institutional Investor

 

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

 

Characteristics of Super Stocks – most have strong earnings and sales growth, they haven’t been discovered by institutions, institutional ownership is between 5% and 30%, they have rising pre-tax profit margins and expanding PE ratio and, but not all, super stocks paid a small dividend – Frank Cappiello

 

Cheap, Cheap, Cheap – The U.S. bought Alaska for 2 cents an acre from Russia in 1867.

 

Real Estate – Mortgage apps are down 40% from the January high.  Expect a sharp downturn in apartment rents for the rest of the year.  The labor market has been strong, but not strong enough for large rent hikes – The Kiplinger Letter ….. Investor buying of homes declined 32% in the 3Q, a sign that the rise in borrowing rates and high home prices have pushed investors to the sidelines – Wall Street Journal ….. Sales of newly built homes rose 7.5% in October, led by sales of higher priced homes – Wall Street Journal

 

Used Car Prices – are now down 14% over the past year, the largest YoY decline on record with data going back to 2009 – The Kiplinger Letter

 

Inflation – Jeremy Siegel, professor of finance at the University of Pennsylvania’s Wharton School, believes that 90% of the inflation has already done and asserted that when the Federal Reserve gets it, there will be a massive surge in equities, according to his interaction – CNBC’s Squawk Box

 

Less Buying – Nervous shoppers are saying they’ll buy less or switch to cheaper brands this holiday season, as inflation remains high and more Americans worry about whether they’ll be able to hold onto their jobs.  Among consumers, 70% say they intend to purchase less meat, seafood, or canned goods, a cheaper brand, or both, as the nation prepared for Thanksgiving and the winter holidays, according to an Ipsos survey conducted in mid-November – USA TODAY ….. Walmart says customers who came to us less frequently in the past are now shopping with us more often including high-income customers – Walmart CEO Doug McMillon

 

Walkers – A British study of some 400,000 adults found that fast walkers, with a walking pace of 3.9 miles per hour could be expected to live almost 16 years longer than slow walkers – Reader’s Digest

 

Tattoos – Nearly half of all millennials have tattoos, compared with only 13% of the boomer generation – Harris Poll

 

Bad Luck Musk – Elon Musk says his recent $44 billion Twitter takeover might result in bankruptcy.  Being the largest shareholder of Tesla, it has seen its value drop nearly $700 billion from its high and down 46% from its September high – Buzz

 

Apartment Vacancy Rates – will rise slightly by the end of the year.  Vacancies will fall nationally in the 2Q to 4.5%, down one point from a year ago – The Kiplinger Letter

 

Households – added $351 billion in overall debt last quarter, the biggest increase since 2007, taking the total to $6.5 trillion – CNBC.com

 

A Great Little Girl Singer - https://www.instagram.com/reel/CktH0omgIIN/?igshid=ZmMyNmFmZTc=

 

Oops! - https://www.instagram.com/reel/Cka_Na8DN1F/?igshid=ZmMyNmFmZTc=

 

 

NCAA

 

In the 1905 football season, eighteen men were killed in college games in the United States and 159 were permanently injured.  At that time, football players wore only light equipment.  Punching, linking arms, gouging, and kicking were all part of the action, and the entire team was allowed to line up on the scrimmage line.  At least a quarter of all games, reports tell us, ended in mob brawls.  In 1905 the Reverend David Buel of Georgetown University reported that one unidentified team had been taught to “strike their opponents in certain delicate parts of the body so as to render them helpless.”  The large number of deaths and injuries that year prompted President Theodore Roosevelt to establish the National Collegiate Athletic Association, which instituted regulations designed to make college football a less lethal sport. – David Louis

 

 

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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