MidSouth Week in Review
May 3, 2024

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

For the week the S&P was up 0.5%.  The Dollar rose above its November high.  Gold made a new recent high at $2400.  Wholesale gas made a 7-month high.  Bitcoin dropped from its March high of $73k to $59k this week.  Sources:  Wall Street Journal and New York Times

Copper – We upgraded our year-end target on copper to $12,000/t from $10,000/t, while raising our full year forecast average price to $9,800/t (vs. $9,200 previously), and retain our average $15,000/t in 2025 – Goldman Sachs ….. Electric cars use 4x more copper than gas cars - Buzz

Mortgage Rates – are at the highest level since the end of November.  The rate on the 30-year fixed-rate mortgage is up half a percentage point since Jan. 1, to an average of 7.17%.  The rapid increase in rates has pushed mortgage payments sharply higher and priced many people out of the housing market – The Kiplinger Letter

Sex – What did Bill Clinton say to Hillary after sex?  Honey, I’ll be home in about a half an hour. - Buzz

10-Year Bond Yield – The yield on the bench-mark 10-year note which rises as bond prices fall has climbed nearly a percentage point from is February lows, setting on Friday at 4.668% - Wall Street Journal

Tesla – was down 21% over three years and the S&P returned 26.4% over the same period.  Tesla underperformed an average stock by 47.4% during the period – First Wilshire ….. Tesla reported a dream 1Q with a 55% plunge in profits from last year – THE WEEK

Gold – Several years ago Gold rose to $800 and back down to $300.  At $300 a banker called me and wanted to see if anyone would be interested in buying Gold bars and bullion coins because he had a client that just filed for bankruptcy.  I bought the bars for $280 an ounce and the bullion coins for $320 an ounce and about three years ago gave them to my daughter with the advice not sell unless things were bad.  Gold today is $2,313 an ounce – Buzz

Mortgages – Thirty-year fixed rate mortgage rates last week jumped nearly a quarter point to 7%+.  The highest level since late 2023.  Thirty-year mortgage rates jumped a quarter point to 7.1% - Wall Street Journal

The Lowest Salary – that U.S. job seekers are willing to accept to take on a new job reached a record high of $81,822 vs. $76,000 last year – Money

A Fool And His Money – A wealthy man asked his young beautiful wife, “If I lost all my money would you still love me?”  The wife replied, “Yes, and I’d miss you too.” – Chuck Roast

Autos – The average completion price on a new vehicle jumped to $48,860 in March vs. $39,950 thru a year earlier, according to Edmunds.  Insurance costs are up 22.2%.  Owners are keeping their average car 12.5 years, increasing for the fifth straight year, according to S&P – Global Prohibition

Marijuana – The Biden administration is seeking to reclassify it as a less dangerous drug.  People familiar with it said a historic move could make it easier to buy and sell pot and make the multibillion-dollar industry more profitable – New York Times

Inflation – There’s no near-term relief in sight.  Consumers are spending heavily, good for the economy and for businesses’ profits, but bad for the Fed as it tries to lower inflation – The Kiplinger Letter

Coffee – Starbucks is pledging to turn around after the coffee giant reported a sharp slowdown in visits and weaker-than-expected sales and profits in the latest quarter – Wall Street Journal

New Car Loan Rates – just jumped to their highest level in 23 years at 8%.  This means the average rate on a new car loan has nearly tripled in 3 years – The Kobeissi Letter

Only Way – to keep your health is to eat what you don’t want, drink what you don’t like and do what you’d rather not – Mark Twain

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.