MidSouth Week in Review
September 15, 2023

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

For the week the S&P was down 0.2% and down 0.1% for the month.  The Dollar hit 105 vs. 99 in July.  U.S. small cap stocks have hit a 22-year low relative to large caps.  A potential auto strike is possible at one or more of the Detroit Big Three.  Banks are closing branches fast with 3,000 closed last year vs. only 1,000 opening.  The resumption of student loan repayments is stated for October.  Sources:  Wall Street Journal and New York Tims

Investment Advice – Knowing when to buy is much more important than knowing what to buy – Yale Hirsh

Perfection – The closest a man comes to perfection is when he fills out a job application form – Stanley J. Randall

Small Cap Stocks – Bank of America strategists believes that this year’s stock bargains, such as value and small-cap shares are likely to begin outperforming growth and large-cap stocks as the market enters the next phase of the cycle – GFMA SmartBrief

Crude Oil – Saudi Arabia’s decision to extend cuts to its crude-oil output until the end of the year is likely to lead to a significant supply shortfall for the rest o the year, keeping prices higher at the pump – Wall Street Journal

Airline Tickets – After soaring in 2022, prices for domestic tickets are on the decent.  In June, airfares had dropped 8.1% from May and 18.9% over the previous 12 months – Consumer Price Index

The Internet – In 1995 Bill Gates was on the David Letterman show to talk about “the internet” but barely anyone listened.  In fact he got laughed at by the audience and David Letterman himself.  But since then the internet has minted a slew of millionaires.  It even turned Bill Gates into the world’s richest man – Eric Fry

Abortions – rose 10% from 2020 to 2023.  Illinois had a 69% increase during the same period – New York Times

Home Prices – After declining on a year-over-year basis for five consecutive months, the longest decline in 11 years, U.S. home prices rose in July.  The recovery suggests the housing downturn is turning out to be shorter and shallower than many housing economists expected – Wall Street Journal ….. Expect the inventory of existing homes to remain low because about 60% of outstanding mortgages have a rate of less than 4% - Kiplinger Letter

College – In the fall of 2009, 70% of that year’s crop of high school grads did in fact go straight to college.  Among the student borrowing who opened their loans between 2010 and 2019, more than half have owed more than what they originally borrowed – The Magazine

A New Tennis Star – 19-year old Coco Gauff won the U.S. Open, upping her career on court earnings to $11.5 million.

Expense Ratios – of mutual funds and ETFs actively managed funds are 0.59% vs. 0.12% for index funds – Morningstar

Interest Rates – The Federal Reserve is done raising interest rates and will likely cut them by one percentage point next year, according to chief economists at some of America’s largest banks – American Bankers Association

School Absenteeism – on an average day last year, close to 10% of K-12 students were not there.  About a quarter of U.S. students qualified as chronically absent.  39% of Michigan students missed at least 10% of school days – New York Times

The Poverty Rate – was up to 12.4% in 2022 vs. 7.8% in 2021, the largest one-year jump on record.  Poverty among children more than doubled, to 12.4% from a record low of 5.2% the year before – Census Bureau

Wisconsin – paid their retirement saving director $1.2 million last year, which was 8x the governor’s salary.  About 30 of the pension fund’s investment managers also earned $500k+, including bonuses – Wall Street Journal

Stressed – Nearly three-fourths of Americans report they are financially stressed and 37% report being “very stressed” – CNBC

Overdose Deaths – among people 65 and over from all causes including suicides and accidents rose 56% from 4,469 in 2019 to 6,702 in 2021.  The rate of overdose deaths quadrupled from 2002 to 2021 – JAMA Psychiatry

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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.