MidSouth Week in Review
September 22, 2023

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

Sep. 26, 2023 | RedChip Companies

For the week, the S&P was down 2.9% and is unchanged since June 26.  For the month the S&P is down 4.1%, for a typical September return.  Car prices have come down slightly as financing costs hit an all-time high.  A recent study suggested only 21% of U.S. adults have a high-yield savings account.  The Feds did not raise interest rates at its September 20th meeting.  Sources:  Wall Street Journal and New York Times




Small Cap Stocks – have completely missed out on the 2023 stock market boom, returning an average return of only 5.32% vs. 16% for the S&P 500 – Stockwits


Marrying – If there’s one thing better than marrying a millionaire, its divorcing him – ANON


Good Investments – Experience taught me a few things.  One is to listen to your gut, no matter how good something sounds on paper.  The second is that you’re generally better off sticking to what you know.  The third is that sometimes your best investments are ones that you don’t make – Donald  Trump, The Art of the Deal


Average Savings Rate – is down to 3.5% from a pre-Covid rate of 7% - 9% - The Kiplinger Letter


Fed Rate Hikes – 40% of economists surveyed by the Financial Times expect the Federal Reserve to raise interest rates to a range of 5.25% to 5.5% which would be the highest in 22 years – SIFMA SmartBrief ….. The Fed did not raise interest rates this week.


University Growth – from 2005 to 2023: Total enrollment +259%, Graduate enrollment +348%, Full-time faculty +254%, Campus size +471%, Buildings and facilities on campus +929%, Total positions +494%, Operating and capital budget +911% - Highpoint University


Student Loans – The start in October will divert up to $100 billion from American’s pockets over the coming year, leaving consumer squeezed and some of the nation’s largest retailers fearing a spending slowdown.  Tens of millions of student-loan borrowers will need to make payments averaging between $200 and $300 each month – Wall Street Journal


Tax Returns – Keep them for at least three years.  That’s generally how long the IRS has to question items on your return and bill you for any additional tax – The Kiplinger Letter


Credit Card Debt – Interest on credit cards is charged for portions of the balance not paid in full each month.  The average credit-card interest rate is 22.16%, as of May – Federal Reserve


Mortgage Loans – rates were 3% a few years ago vs. 7.5% today.  A $500k loan at 3% would cost $2,108 per month vs. $3,496 at a 7.5% rate, a 66% increase from a few years ago – Jay Kumar


(WMPXX) – The one dollar Allspring Money Market Premier Fund issued by Wells Fargo is now yielding 5.47% - Buzz


Inflation – jumped for the second consecutive month thanks to a surge in gas prices – CNBC.com


Ford Motor Company – went public in 1957 with a record number of firms (approximately 750) participating in the offering.  The maximum order was limited to 5 shares because the company thought a stockholder might become a future Ford owner – Wall Street Journal


Married Parents – In 2019, only 63% of kids lived with their married parents vs. 77% in 1980.  Children who grow up without two parents at home often earn less as adults – New York Times


Crude – An almost uninterrupted rise in oil prices has pushed benchmarks Brent crude to $100 a barrel, posting a new challenge for censor bonds and their battle against inflation – Factset, Brent crude has risen from 72 in June to 94 this week – Finviz


Healthcare Premiums – are expected to jump 6.5% in 2024 from $14,600 a year per employee.  The reason is higher hospital labor costs and heavy demand for new and expensive diabetes and obesity drugs – Wall Street Journal


Business Professional Attire – Only 3% of U.S. workers now wear business professional attire to work – Gallup


Earnings – Companies which do well generally report their earnings earlier than those which do poorly – Alan Abelson


Queen Elizabeth - https://www.instagram.com/reel/Cw6-jOUOsDW/?igshid=NjZiM2M3MzIxNA==


Dancing to Twist Again - https://www.instagram.com/reel/Cw_tqJDtSxt/?igshid=NjZiM2M3MzIxNA==


Good Voice - https://www.instagram.com/reel/CwjN9DNNk7O/?igshid=NjZiM2M3MzIxNA==


Roy Orbison - https://www.instagram.com/reel/Cwp5WQdsX6P/?igshid=NjZiM2M3MzIxNA==


You’re The One That I Want - https://www.instagram.com/reel/CwWGaQtAVIz/?igshid=NjZiM2M3MzIxNA==



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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  • Bob McCooey, Senior Vice President, NASDAQ Stock Market