MidSouth Week in Review
May 5, 2023

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

May. 8, 2023 | RedChip Companies

Because of a weakness in bank stocks the S&P was down 0.82% for the week.  The Fed raised interest rates by a quarter of a percentage point, for the 10th rate hike and a 16-year high, but suggested it may pause on more hikes.  The yield on I Bonds dropped to 4.3% from 6.89%.  Regional banks took a nosedive this week because of the weakness in some of the California banks.  Wholesale gas prices dropped to $2.27 from the April $2.90 high.  Covid deaths dropped to the lowest level since March 2020.  The Euro made a 13-month high vs. the Dollar.  The 5-year Treasury bond yields dropped to 3.27% vs. 4.30% a few months ago.  Gold rose to $2080 to nearly make a record high.  Sources:  Wall Street Journal and New York Times




High Yield Savings – Goldman Sachs has introduced accounts yielding 4.15% and Bankrate.com is paying 4%+.  JP Morgan, Chase and Bank of America pay as little as 0.01% - Bloomberg Business ….. Money market account Allspring (WMPXX) yields 4.95% - Buzz


Math Education – One way to teach children modern math is to short them on their allowance.  It’s amazing how much even a slow one can learn in a short period of time – Buzz


KBW Regional Banking Index – fell 4.5% on Tuesday over concerns about the health of the banking sector after First Republic bank was seized by regulators – Wall Street Journal …..First Republic Bank declined to 26 cents yesterday from last Friday’s close of 8.10 ….. The S&P regional bank index (KRE) declined from 65 in February to 34 yesterday - Buzz


Retirement – Only 64% of workers surveyed reported optimism about their prospects in retirement vs. 73% last year – Employee Benefit Research Institute


Average Annual Family Income – is now $70,784 vs. $687 in 1915 – Census Bureau


Baseball – Researchers have found that a temperature rise of just one degree Celsius increases the number of homers by 1.9%.  That was calculated over the past 10 years.  About 50 homers over the past during that period wouldn’t have happened without global warming – NPR.org


Hospitals – are under a strain by a flood of very sick patients, overcrowded emergency rooms and staffing shortages.  A record 19 shuttered in 2020.  Fewer than half of the rural pregnant women can now find needed levels of care within 30 miles which is particularly dangerous for rising pregnancies – THE WEEK


Lab Grown Diamonds – now represent a third of all engagement rings.  In 2016, a one-carat lab grown started selling for around $5,500 vs. $1,500 today.  Young couples can now get the carat size they want and still afford a honeymoon – New York Times ….. Men didn’t wear wedding rings until around the 1940s – Buzz


The U.S. Economy – Nearly four-fifths have told pollsters that their children will be worse off than they are, the most since the summer began in 1990.  America’s poorest state is Mississippi but its higher than France.  Investors who put $100 in the S&P in 1990 would have $2,000 today – The Economist


Electric Vehicles – The copper needed to build future electric cars and switch to renewable energy … as the U.S. and other countries are planning … would send global copper demand to 58 tons in 2050 which is more than they world consumed from 1900 to 2021 – The Kiplinger Letter


Ouch! – On February 6 an earthquake in Turkey revealed the shaky foundation on which so much growth was built.  More than 50,000 died as buildings toppled, crumbled or pancaked – New York Times


Eight-Graders’ Test Scores – in U.S. history and civics fell to the lowest level on record.  Only 13% met proficiency standards.  In history the average score in 2027 was 258 out of a possible 500.  The American Historical Association said the falling quality taught in schools has been fueled by political acrimony – Wall Street Journal ….. Just 18% were considered proficient – New York Times


Harley-Davidson – The motorcycle maker says it can’t find enough agents to repossess bikes from buyers who fall behind on their payments which is attributed to a shrinking number of professionals to take on the task.


Vice Presidents – Voting for President Biden in 2024 is potentially a vote for Vice President Kamala Harris.  A third of vice presidents, 15 out of 45, eventually became president – Frank Richter, Ph.D.


Locked In – More than three-quarters of home sellers in a recent survey by Realtor.com said they felt “locked in” to their home by their own low mortgage rate.


Chicken Talk - https://www.instagram.com/reel/CrlGY8voP8S/?igshid=MDJmNzVkMjY=


Little Boy Dancers - https://www.instagram.com/reel/Cqrx7nSsNuw/?igshid=MDJmNzVkMjY=


Little Girl on Piano - https://www.instagram.com/reel/CrlXOtvgpol/?igshid=MDJmNzVkMjY=                                                                                                                                                                                                                                           


Dance - https://www.instagram.com/reel/CrFsHJXgacT/?igshid=MDJmNzVkMjY=


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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