MidSouth Week in Review
November 29, 2024

Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund

S&P made its 56th new high for the year closing the week up 1.0% and year to date is up 28.5%.  Including dividends, the S&P is now up over 29% in 2024.  The S&P has finished with a total return above 25% in 26 out of 96 years since 1928.  The U.S. economy adds 227,000 jobs in November, above expectations of 202,000.  The unemployment rate jumped to 4.2%, in-line with expectations of 4.2%.  Bitcoin hit a new high for the first time crossing $100,000 and closing the day at $101,600.  Wholesale gas price was down 7% for the month closing at $1.92.  Sources:  Wall Street Journal and New York Times

U.S. Restaurant Bankruptcies - There has been 14 bankruptcies in restaurant chains with $20+ million in revenue this year, the highest number since 2020.  This is up 133% compared to 2022.  This comes as restaurants have been materially hit by elevated interest rates, rising labor costs, and declining sales.  Prices have increased 44% over the last decade, according to Black Box Intelligence.

Magnificent 7 - Mag 7 stocks have returned a 148% since the beginning of 2023 compared to a 35% return by the rest of 493 companies in the S&P.  As a result, Mag 7 stocks reflect a near record of 31% of the S&P 500 – Wall Street Journal

Credit Card - Credit card debit hit a record high of $1.17 trillion - CNBC

S&P - November being up 5% for the year, the next 12 months we could see an average of 12.8% gains.  May and September are the best months for gains - Ryan Detricks

Insider Selling - The ratio of insider seller to buyer hit nearly 6x, the most in at least two decades.  This is double the average seen over the last 3 years.  After the historic market run, corporate insiders are taking profits on their own stocks – Financial Times

Small Cap - Russell 2000 was up 10.9% in November, it’s the 22^nd 10% monthly gain ever.  It has been higher 6 months later 90% of the time and up 11.3% on average - Ryan Detrick, CMT

Cities With Most Billionaires - https://www.instagram.com/reel/DBniAc2RJXt/?igsh=dHp3bTQxb3F5d3R0

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.