MidSouth Week in Review
January 20, 2023

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

For the week the S&P declined 0.7%.  The 30-year fixed rate mortgage dropped to 6.15% vs. 6.33% last week.  The Dollar hit its lowest level since May.  Copper hit its highest level since June.  Gold made a 9-month high.  Bitcoin soared to $22,000 from $16,000.  39% of global fund managers are holding an underweight position in U.S. equities.  Wholesale gas hit a 2-month high in jumping 28% in 6 weeks.  The yield on the 10-year government bonds dropped from 4% to 3.48%.  Sources:  Wall Street Journal and New York Times

Good Advice – The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.  The way to do that is to look at investing differently than you might other activities.  The right question to ask is, where is the outlook most miserable? ….. To buy when others are despondently selling and to sell when others are greedily buying requires the greatest fortitude and pays the greatest potential reward ….. Buy value, not market trends or economic outlook – Sir John Templeton

The Thrifty – will eventually own the spendthrifts – Sir John Templeton

Inflation – Expect it to fall from the 6.5% increase in the Consumer Price Index registered in December to about 3% by the end of 2023 – Federal Reserve

Auto Sales – last year fell to 14 million vs. 17 million the previous year.  With inventories low and interest rates at 20-year highs, dealers will have to offer more incentives to get sales to increase – The Detroit News

Old Age – A French nun who was believed to be the world’s oldest person died a few weeks before hitting 119.  Jeanne Calment, also a French woman, died in 1997 at age of 122 and is said to hold the record for longevity – New York Times

Cap Gains Taxes – in 2023 the 0% rate applies to those with taxable income up to $44,628, $59,750 for head of household filers and $89,250 on joint returns.  The 20% rate starts at $492,301 for singles, $523,051 for heads of households and $553,851 for couples filing jointly – The Kiplinger Tax Letter

Electric Vehicles – sold in Europe last year rose to 20.3%, 25% in Germany and 19% in China.  Volkswagen, Europe’s biggest manufacturer by sales, said that overall new car sales fell 7% last year, but sales of electric vehicles rose 26%.

Pet Spending – The average annual household spending has grown from $460 in 2013 to $770 today, a 67% increase – Washington Post

Homes – Despite the price-growth slowdown, homes are still overvalued.  Real home prices have increased more than 20% above what economists think is a healthy level.  Prices are still almost 40% higher than at the start off the pandemic.  Moody’s Analytics say nearly 60% of metro areas are still extremely overvalued – Kiplinger Letter

Accountants – More than 300,000 accountants and auditors have quit in the past two years and many unable to meet customers’ needs for services such as business audits and preparing tax returns.

Online Porn – Three-quarters of teenagers have viewed pornography online by the age of 17, with the average age of first exposure at age 12.  41% of teenagers say they had seen images of nudity or sexual acts online during the school day.  Much of the exposure was by accident, with 58% saying they did not seek out the sexually explicit videos – New York Times

Tesla – With its sales slowing and stock price tumbling, Tesla slashed prices dramatically last Friday on several versions of their autos, making some of the models eligible for a new tax credit.  The company dropped prices nearly 20% in the U.S. – Tom Krisher

Start-ups – In 2021 America filled apps to start 5.4 million new businesses vs. 4.4 million in 2020.  Why the big gain?  Millions of people were suddenly laid off, giving them the time, pro inclination, to start new businesses – Census Bureau

Stolen Guns – 1952 guns were reported stolen in Nashville in 2022, with more than 70% of those thefts occurring from vehicles – Metro Police Department

Joe Biden - https://www.instagram.com/reel/ClwxnatAsrc/?igshid=ZmMyNmFmZTc=

Elizabeth Taylor - https://www.instagram.com/reel/CnSknNDoTs-/?igshid=ZmMyNmFmZTc=

Neil Sedaka- https://www.instagram.com/reel/Cm-PqqxtaHJ/?igshid=ZmMyNmFmZTc=

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.