MidSouth Week in Review
November 3, 2023

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

The S&P was up 5.8% for the week, which was one of the biggest gains in a long time.  12% of households now have a net worth of $1 million+.  The Feds let interest rates go unchanged for the second straight month.  Bitcoin soared to $35k+.  30-year mortgage rates hit a 23-year high.  Gold hit $2000+ vs. $1825 last month.  Sources:  Wall Street Journal and New York Times

August, September and October – Since 1947, there have been six years when the S&P fell in each of August, September and October.  1957 was the only year when the S&P was down for the rest of the year – Jason Pharris

Ted Williams – played in Major League Baseball from 1939-1960 and during that time had the highest batting average, the most home runs, and the most runs batted in vs. MLB players.  It was a career Triple Crown – Buzz

The Economy – had a blow of showing in the 3Q with a 4.9% growth.  But, expect a slowdown over coming quarters, before picking up in the seasons last half of next year – The Kiplinger Letter

Abroad Trips – Planning a trip abroad and looking for deals, consider Thanksgiving: while the period in the U.S. is among the busiest and most expensive time of the year to fly domestically, that’s not so with Europe, Mexico and other overseas destinations – Kiplinger

Interest Rates – Not too long ago, the federal funds rate (upper limit) was 0.25%, the 10-year Treasury was yielding 2% and the 30-year fixed rate was below 3%.  At the end of the 3Q, they were 5.5%, 4.6% and 7.7% respectively – First Wilshire

Rich Kids – The children of the richest 1% of parents are 13x as likely as the poorest students to score 1300+ on their SAT tests – New York Times

Series I Bonds – The yield will be 5.27% from November 1 to April 2024, above the annual 4.3% rate that has been in place since May – Treasury Department

Millionaires – Last week the Federal Reserve revealed that the average net worth of American families topped $1 million for the first time, surging 42% from 2019.  The average is skewed by a small number of billionaires and multimillionaires.

Houses – With the average mortgage rate recently hitting 8%, the mortgage cost is roughly twice as much to afford a median-priced home vs. two years ago – CNN.com ….. The monthly cost of a new mortgage is now 42% of U.S. household income, 10% higher than on the eve of the 2008 housing crash, per UBS

Tips – The average tip percentage in the U.S. is 17.44%.  The highest is California at 22.69%, while the lowest is 14.22% in Illinois – USA TODAY

EVs – A year ago most car dealers would sell an electric vehicle within a few weeks vs. longer than a month today, according to Edmunds.com.  An EV sold before 21 days vs. 65 days today – USA TODAY Network

Palm Beach Homes – The average sale price topped $20 million in the 3Q, making it far and away the most expensive market in the country.  The average price per square foot of homes sold in Palm Beach reached $4,554, more than 2.5x more expensive than Manhattan – CNBC.com

Social Security – Wait if you are a higher earner, its best to wait till 70 to get your benefits.  For each year you delay, between 62 and 70, when those benefits top out, your monthly check rises as much as 8% - To The Rescue

1958 vs. Today – In 1958, 9% were 65 and older vs. 17% today.  The median income was $2,666 in 1958 vs. $47,620 today.  49 million used airline traffic vs. 853 million passengers today.  The average gas price was 31 cents a gallon vs. $3.27 today.  The average American drives 11,000 miles a year vs. 9,500 in 1958 – A.J. Baine

Commercial Real Estate – Lending is shrinking to historically low levels, threatening a rise in defaults on expiring debt and a sharp decline in new construction of warehouses, apartments and other properties.  Banks, insurance companies and other commercial property lenders have been cutting back since the first half of 2022 – Wall Street Journal

Shuffle - https://www.instagram.com/reel/CxkIZX2tRoi/?igshid=NjZiM2M3MzIxNA==

Chuck Berry - https://www.instagram.com/reel/CxzjaxKLcv5/?igshid=NjZiM2M3MzIxNA==

Diana - https://www.instagram.com/reel/Cy6uZluIJOH/?igshid=NjZiM2M3MzIxNA==

Love Queen - https://www.instagram.com/reel/Cw7_leWPGc_/?igshid=NjZiM2M3MzIxNA==

Presidents Dancing - https://www.instagram.com/reel/CxX5ZhVthmr/?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.