MidSouth Week in Review
February 24, 2023

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

For the week, the S&P during the holiday shortened week declined 2.6%.  The only major stock index that is negative is the Dow (-1.0%), which had the best return of the indexes last year.  The S&P had its worst performance of the year on Tuesday with a 2.0% decline.  The Dollar rose to 105 vs. 100.5 at the beginning of the month.  Inflation for the month rose 0.6% vs. the 0.5% estimate.  Applications to purchase homes dropped to the lowest level since 1995.  The yield on the 2-year government bonds rose to 4.82%, its highest level since 2007.  The 30-year mortgage rates rose to 6.5% this week, the highest level since November.  The Bankrate.com survey of 4,800 online banks listed the 30-year average rate at 7.04%.  Home sales weakened in January for the 12^th straight month as continued high mortgage rates kept buyers on the sidelines.  Walmart reported its second straight decline in profits and warns that 2023 will be a rough year as inflation hits consumers.  Natural gas prices have dropped more than 65% since mid-December.  The U.S. economy expanded at a 2.7% annual rate, a downgrade from the initial 2.9% estimates.  Sources:  Wall Street Journal and New York Times

Dividend Stocks – in the S&P tend to outperform the broad index in down markets (when the average S&P stocks posts a negative 12-month return), keep pace with the index in moderately rising markets and lag the index when the average return is 20%+ - Dow Theory Forecasts

Women Seeking Men – Me: buxom blond with blue eyes.  You: elderly marriage-minded millionaire with bad heart – Uncle John’s

Home Equity Loans – 333,537 were taken out by homeowners in the 3Q last year.  That’s about a 47% increase from the same quarter in 2001.  Banks also granted about 405,646 home equity lines of credit, up 41% from a year earlier – TransUnion, HELOC

Slavery – In 1777, Vermont became the first colony to band slavery and the Vermont legislature moved to provide full voting rights to African American men – The Contributor

Hospitals – A place where you can stay three days if you have a big illness and three weeks if you have big insurance – Anon

In 21 States – public-school enrollment fell by at least 700,000 between 2019 and 2022.  Out-of-state moves, private-school enrollment, and homeschooling account for more than half of the drop, but the whereabouts of 230,000 children in grades K1 through 12 are unknown, and most may have simply stopped attending any school – Associated Press

The Inflation Reduction Act or IRA – A new law signed last year and now in effect as of January 1, includes tax credits and rebates for homeowners who make energy-saving updates to their homes – NerdWallet

California – It was three years ago this month that the state recorded it first know victim of Covid.  Now the pandemic’s toll has reached 100,000+ deaths – LA Times

Domino’s Pizza – said its U.S. delivery business has taken a hit.  Why?  Consumers are cooking their own food at home to save money – Wall Street Journal

Home Sales -will be even lower this year than in 2022.  Why?  Many would-be sellers will be sitting tight, reluctant to give up the low rates on their current mortgage vs. higher current rates – The Kiplinger Letter

Rate Inflation For 2023 – 10-year Treasuries – 3.55% to 3.00%, 30-year fixed rate mortgages – 6.74% to 5.25%, five-year card loan – 6.13% to 6.90%, credit card rates – 19.6% to 20.5%, home equity loans – 7.75% to 8.75% - Bankrate.com

New York City – drug overdoses used to account for 60% of all accidental deaths.  Now they account for 80% to 85% - New York Medical Lab

Electric Vehicles – qualify for a $7,500 tax credit on purchases below $55,000 – Kiplinger Letter

Unemployment Benefits – in 2020 averaged about $387, ranging from a low of $215 in Mississippi to $550 from Massachusetts – Center for Budget and Policy Priorities

Overweight – Some 40% of Americans are obese, while another 30% have enough excess weight to elevate the risks of heart disease, cancer and osteoarthritis.  A pair of new drugs, Ozempic and Wegovy, allow obese people to shed an average of 15% of their body weight, losing an average of 35 pounds each – The Week

On This Day – in 1854, the first perforated postage stamp was issued for distribution.  The British stamp was known as a Penny Red and featured Queen Victoria – The Hustle

Coffee Drinking – The incidences of irregular heartbeat, cardiovascular disease, heart related deaths and deaths from any cause were lowered among coffee drinkers.  However, drinking decaffeinated coffee was not associated with reduced risk of irregular heartbeat – Harvard Health Letter

U.S. Credit Card Debt – jumped to $931 billion at the end of 2022, an 18.5% increase from 2021.  The average balance was $5,805 – CNBC

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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.