MidSouth Week in Review
May 10, 2024

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

For the week the S&P was up 1.9% and is up 9.4% y-t-d. The yield on the 10-year government bonds increased.  The yield on the 30-year government bond increased to 4.64%.  Wholesale gas dropped to $2.4 0vs. $2.82 in April.  Disney reported a loss and its shares fell 9.5%.  Sources:  Wall Street Journal and New York Times

Economic Growth – We have headed for the longest period of economic growth and lowest unemployment in history.  Because of economic growth, demand from workers will increase – Reason

Old Age – There are three signs of old age.  Loss of memory …. And I forgot the other two – Red Skelton

Mortgages – In 2022 just over 40% of homeowners older than 64 had a mortgage, a jump from roughly 25% of generation ago – Harvard University

Trends – We are headed for the longest period of economic growth and lowest unemployment.  Demand for human workers will increase; virtually anyone wanting to enter the workforce will have opportunities to find meaningful, well-compensated careers – Reason

iPhones – Getting a new one is about as exciting as upgrading your washing machine – THE WEEK

Consumer Confidence – fell in April as Americans juggled “elevated inflation , high-borrowing costs and a gradually cooling labor market” – Bloomberg

Babies – 3.59 million were born in the U.S. last year, a 2% drop from 2022 and the lowest number since 1979.  The U.S. birth rate has fallen 11% since 2000 – TIME

Trade Settlement Period – Starting on May 28, 2024, the settlement period for most securities traded on U.S. exchanges or over the counter will shorten from two business days (T+2) to one business day (T+1) – Charles Schwab

Auto and Home Owners Insurance – prices have sky-rocketed over the past couple of years.  Consider raising your policy’s deductible to save money – Kiplinger Personal Finance Advisor

Amazon – is now the last Big Tech giant holding out against issuing dividends.  Alphabet, Google’s parent company, last week financially issued a dividend for the first time – MarketWatch

Job Openings – fell from 8.8 million in February to 8.5 million in March.  The lowest level in more than three years – MarketWatch

Biden – Since he entered the office, electricity prices have soared by 29%+ although up only 5% in the past year.  And the price of piped gas is up nearly 30%, making utility bills more expensive.  Meats, poultry, milk and eggs are up 21.4% - CPI

Home Sale Taxes – are taxed up to 20%.  Single filers get an exemption of up to $250,000 of net gains.  Married couples filing jointly get up to $500,000.  Some higher earners might also face a 3.8% surtax – Wall Street Journal

College Deals – 47% of all students who graduate are debt free …. Of those who graduate with debt, they averaged $26,000 in debt, down 4.4% from five years ago – Randy Boyd

Mortgage Rates – are at the highest level since November.  The rate on the 30-year fixed-rate mortgage is up a half a percent point since January 1 – The Kiplinger Letter

Electronic Retailing – The high tech price tags can help alleviate labor shortages and lower costs by eliminating the manual labor of updating prices in grocery stores and other stores – The Kiplinger Letter

Household Wealth – under age 40 jumped by 49% from $174k to $259k between 2019 and 2023 – CNBC

Depression – About 60 percent of young Americans with severe depression receive no treatment, according to Mental Health America, a nonprofit research group.

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.