MidSouth Week in Review
September 13, 2024

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

For the week the S&P was up 3.8% and for the year it is up 17.9% . Inflation slows to 3-year low and the overall prices to have risen 2.6% from a year ago. Wholesale gas prices hit a low of $1.89 yesterday from a high of $2.82 in April.  Gold hit an all-time high of $2,581 per ounce. The average interest rate on a 30-year mortgage has fallen from 7.8% to 6.2% in a matter of months.  Sources:  Wall Street Journal and New York Times

Consumer Credit Card - charge-offs at US banks are up 3.0% year-to-date to their highest level in 13 years. The percentage of debt unlikely to be collected has more than DOUBLED in 2 years, according to an FDIC report released Thursday. The surge has been driven by elevated interest rates, rising prices, and an uncertain economic outlook. Americans now owe a record $1.14 trillion on their credit and pay a record 22.8% interest on this debt. Meanwhile, the average debt balance hit a whopping $6,329 in Q2, up 4.8% year-over-year. US consumers are struggling to pay off debt – Barron’s

Sports Betting – The boom in legal sports betting is leading Americans to take money from their stock brokerage accounts to fund online wagers, according to a new academic study.  It found that households bet an average of $1,100 in the 38 states that have legalized sports gambling since 2018.  Meanwhile, stock market investments by households in those states dropped by an average of 14 percent following legalization – Fortune

Heat – At least 2,325 Americans died from heat last year, 603 more than in 2022 and the most in more than two decades of records.  Those official figures are likely well below the actual numbers, say researchers, who have charted a sharp rise in heat-related deaths starting around 2016 – USA Today

A Democratic Sweep – would likely be the most negative outcome for equity markets, primarily due to a higher probability of higher corporate tax rates.  The expiration of some 2017 personal tax cuts could also be a small drag on consumer spending – UBS

Large Companies - 452 large companies have now declared bankruptcy year-to-date, the 2nd highest number in 14 years. This is only below the 466 bankruptcies recorded in 2020 when economic activity was halted by lockdowns. In August alone, 63 firms have gone bankrupt, up from 49 in July, marking the 4th worst month in 4 years – Wall Street Journal 

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.