MidSouth Week in Review
April 5, 2024

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

For the week the S&P declined 1.0%.  Gold hit a new high at $2,346.  Major indexes fell sharply Thursday after Federal Reserve officials suggested interest rate cuts may not be imminent.  Wholesale gas hit an 8-month high of $2.80.  Crude made a 6-month high.  Sources:  Wall Street Journal and New York Times

Investment Wizard Warren Buffett – doesn’t use fancy computer models.  Nor does he hire teams of Ivy League-educated Ph. D.s in economics or Wall Street derivative genius’ to navigate the market.  He doesn’t even have a quote machine in his office.  His main investment tool:  common sense.  Buy great businesses at reasonable prices and only buy businesses you understand.  “Keep it simple, stupid,” as he likes to say – Lisa Lee Freeman, Investor’s Business Daily

Why? – is it that when you’re married you’re good for nothing, but when you’re getting a divorce your wife will claim you’re worth at least a million or two more than you’ve got?

Trump Stock – Trump’s Media Company experienced a significant pop on its first day of public trading.  Shares of Trump Media & Technology Group jumped 50%+ minutes after it made its debut under the ticker symbol “DJT” this week.  The gains raised Trumps net worth to more than $6 billion – THE WEEK

Life Expectancy – After two years of declines, average life expectancy is the U.S. rose by more than a year in 2022 to 77.5 – CDC

Social Security Wage Base – is expected to rise to $176,700 in 2025.  For longer-range planning, the estimates are $184,805 for 2026, $192,000 for 2027 and $199,500 for 2028 – The White House

Sales of Existing Homes – are picking up despite higher mortgage rates.  They rose 9.5% in February to 4.38 million annualized – CMTS

U.S. Debt – is expected to soar.  It’s now 99% of U.S. GDP but is expected to  hit 116% in a decade and 166% by 2054 – The Kiplinger

Bullies – A British study found that 10-year-old kids who exhibit “aggressive behavior” on the playground go on to earn higher salaries than their peers at 46.

21% of Americans – attend religious services every week and 9% attend almost every week.  56% seldom or never attend – Gallup

Sales of Existing Homes – surged 9.5% to a seasonally adjusted annual rate of 4.38 million in February.  It’s the first time in more than two years sales have increased for two consecutive months.  Homes that sold for $1 million+ shot-up 37% - Wall Street Journal

Tax Refunds – Almost 940,000 Americans have yet to claim their 2020 tax refund.  There’s more than $1 billion worth of unclaimed refunds that will be left on their 2020 tax returns after May 17 – Axios

Commercial Properties – The decline in value is a big issue for some banks.  Banks hold about 38% of the trillions of dollars in outstanding debt tied to U.S. commercial real estate – The Kiplinger Tax Letter

Loan Inventories – of homes for sale are keeping a lid on home flipping, which fell around 30% in 2023 versus 2022, the largest yearly decline since 2008 – The Kiplinger Letter

Mergers – A bipartisan bill would end tax-free mergers for big corporations ….. and require shareholders who receive stock to immediately recognize gains – The Kiplinger Tax Letter

Retirement – It would take $1.46 million to retire comfortably according to a recent survey of 4,588 adults, up from $1.27 million a year ago and over $1 million more than the average survey participants nest egg – Northwestern Mutual

Retirement Savings – Almost 3 out of 10 Americans have no retirement savings.  Experts have warned that the U.S. is headed for a retirement crisis – Financial Planning

U.S. Home Prices – have risen 2.4x faster than inflation since 1963 - CNBC

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.