MidSouth Week in Review
August 9, 2024

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

I am at my vacation house this week in Nantucket celebrating my birthday with my daughter Annsley and two grands.  My daughter Annsley lives in Boston. Benchmark Brent crude prices fell about 8% over the past month.  Average gasoline prices are down 5 cents to $3.46 over the past month.  The average rate on the 30 year fixed mortgage declined around a quarter percentage point to 6.47%.  S&P was flat for the week.– Buzz

Small Caps – The best returns for investors in the small-cap sector have always come from those unappreciated and underfollowed companies at the lowest 20% of the PE multiple chain.  In the past 25 years, this group has outperformed the high PE stocks by a factor of two – David Dreman

Tax Tip – If you plan to leave something to charity upon your death, you might consider donating your IRA assets.  A top bracket filer could lose more than 75% of his IRA to Estate and Income taxes, leaving as little as $250,000 from a $1 million IRA to distribute to his heirs – Buzz Heidtke

The U.S. National Debt – this week surpassed $35 trillion for the first time in the nation’s history.  The milestone comes after the national debt surpassed the $34 trillion threshold for the first time in January, and the $33 trillion mark in September.  It took 192 years, from 1789 to 1981, to accumulate the first trillion dollars of national debt – National Review

The Top 1% - paid 45.78% of the individual federal income taxes in 2021.  The top 5% paid 65.6% of the income taxes.  The bottom 50% paid only 2.34% of the total income tax bill – KTL

New Home Sales – are losing steam for the second consecutive month in June as high finance costs discourage would be buyers.  Sales dropped 0.6% in June and 17% below the current cycles, high of 741,000 in May 2023 – The Kiplinger Letter

Passenger One – searching for floor numbers on the elevator.  “I don’t see No. 13.”  Passenger Two: “Some people consider 13 to be unlucky.”  Passenger One: “But my appointment is on the 13^th floor.”  Helpful Nashvillian: “You can always get off at 14 and walk down a flight.” – Jackie Bain

McDonalds – has admitted their prices are too high after reporting lower sales globally compared with last year for the first time since 2020.  In one survey more than 80% of respondents said they have cut back on their fast-food spending – CNN.com

The Federal Reserve – has held interest rates steady but hinted that a cut could come in September – New York Times

As Of July 15 – six homes in the U.S. have sold for more than $100 million this year.  If the sales pace continues, it would more than double last year’s total and eclipse the report of nine homes sold for over $100 million in 2021 - CNBC

Largest Stadium in the United States - https://www.instagram.com/reel/C9_3S45thXn/?igsh=YXBhZHAydTgwZmZp

How Much Things Cost in 1940 - https://www.instagram.com/reel/C-J3EQOuHzQ/?igsh=Ymw4YXRtcWhhNm1s

What My $10,000 Was Worth of Nvidia Over Time - https://www.instagram.com/reel/C8vDSqOuUs2/?igsh=aGxndHNrd3RuN2Vi

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 put through a regular 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.