To all my Partners,
By now all of you have received your individual monthly statements. If for any reason you have not, please contact me and I will be glad to resend it to you.
History has shown that some months are kinder than others to investors. According to records spanning over 95 years, since 1929:
For the month of December, Bena Capital Fund gained +6.52%.
| 12-MONTH RETURNS | JANUARY | FEBRUARY 1-15th |
| +29.26% | -11.19% | +6.12% |
History has shown that some months are kinder than others to investors. According to records spanning over 95 years, since 1929:
The months with the biggest gains have been:
January, April, July & December
The months with the biggest losses have been:
February, May, August, September
Bena Capital Fund:
| 12-month returns | February | February 1-15th |
| +34.89% | +7.26% | -2.03% |
Stocks fell after inflation data (CPI, PPI) was reported this month as hotter than expected. Producer Price Index (PPI), rose 0.6%% in February layered over other PPI increases throughout the last consecutive months. This month, the Consumer Price Index (CPI) climbed more than forecast over the past year. Going into 2024, Wall Street was buying stocks thinking they will probably be 4 interest rate cuts for the year but with the hotter-than-expected inflation numbers (CPI & PPI), the thought of 4 cuts is just wishful thinking for this year.
Last week the EU (European Union) fined Apple, saying the iPhone maker set unfair rules for developers of music streaming apps. This fine is of the EU’s largest-ever antitrust penalties. Needless to say Apple will be fighting this fine vigorously through the courts. There’s an old saying, ‘you can’t fight City Hall’ meaning they’ve got the deeper pockets. Apple, on the other hand, probably has deeper pockets…than the EU. Bena Capital has a substantial stake of Apple, for the last 20+ years, ‘this too shall pass’!!
So, how did we do?
| For February: | 1-year (12-month) Returns: | ||
| Dow Jones: | +1.93% | Dow Jones: | +19.78% |
| S&P 500: | +4.61% | S&P 500: | +26.89% |
| Nasdaq: | +5.29% | Nasdaq: | +35.74% |
| Berkshire Hathaway: | +6.83% | Berkshire Hathaway: | +24.36% |
| Bena Capital Fund: | +7.26% | Bena Capital Fund: | +29.26% |
Some highlights of last month:
- February added 275K full-time & part-time jobs for month
- February’s unemployment at +3.9% (up from January’s 3.7%)
- February’s CPI (Consumer Price Index) rose higher +0.4% from January
- February’s CPI Year-over-Year is up +3.2% (up from Jan’s YOY of +3.1%)
- Amazon joined the 30 Dow Jones index on February 26 replacing Walgreens
- Family Dollar stores will close 1,000 unprofitable stores this year, 600 stores immediately and an additional 400 will not renew the leases when those leases expire.
- Unilever spinning off Ben & Jerry’s Ice Cream division and cutting 7,500 jobs.
- Sweden becomes NATO’s 32nd member to join the Alliance.
- NYC Mayor imposes an 11 p.m. to 6 a.m. for illegal migrants in 24 NYC shelters due to violence occurring from illegal migrants.
- Credit card delinquencies surged in 2023, indicating ‘financial stress according to New York Federal Reserve
Key changes in consumer rates:
| 3/11/22 (%) | 3/15/24 (%) | |
| 30-year Fixed Rate Mortgage: | 4.29 | 7.09 |
| Personal Loan (5-year): | 12.63 | 21.14 |
| Credit cards: | 16.34 | 20.75 |
| New vehicle APR: | 5.2 | 7.1 |
President Joe Biden’s Fiscal Year 2025 Budget Proposal
$7.3 Trillion $5.5 Trillion $1.78 Trillion
Budget spending Tax revenue Adds to Federal deficit
Source: White House
Cost on the National Debt for February
The cost on the National Debt grew to a record in February. Treasury Dept. stated that we spent $76 billion on interest alone last month, up 67% from February of 2022!
The deficit which is the difference between what the U.S. Treasury takes in compared to what we spend grew 13% from February 2022.
But Biden can forgive student loans that would go towards the treasury because… it’s only money and this IS an election year!
Student Loan Forgiveness
Announced in February: $1.2B
Total under President Biden: $138B
Yes, it is election season!
Inflation over the last 3 years
(January 2021 – Feb. 2024)
+21.2% +21% +29.6% +22.7% +20% +28.4% +30% +20.3% +31.4%
Groceries Eating out Baby food Pet food Rent Electricity Nat. gas Used cars Airfare
Source: BLS
…more inflation (because I couldn’t get in on the same line!)
(January 2021 to February 2024)
+12% +31.4% +41.96% +46.62% -2.11% +4.11%
Apparel Airfare Gas prices Credit card Real hourly 30-yr. mortgages
debt wages
Source: BLS; St. Louis Fed; AAA; Freddie Mac
Not all things have gone up:
(January 2021 to January 2024)
-26% -2%
Home sales Real wages
Source: BLS; Fed. Reserve Bank
Percentage of those taking early 401(k) withdrawals due to economic hardships going up?
(2020 through 2024)
2.0% 2.2% 2.8% 3.7%
2020 2021 2022 2023
Source: CNBC; March 11, 2024
We don’t have an income problem; we have a spending problem The new $1.2 Trillion spending bill:
- $1.8 million for LGBQT+ senior citizen living homes
- Sen. Chuck Schumer (D-NY) added $1.5 million to encourage kids to play video games
- Sen. John Fetterman (D-PA) added $368,000 for a ‘Built By Us’ radio podcast.
- Sen. Tammy Baldwin (D-IN) added $2 million for illegal aliens to see psychiatrists
- Sen. Elizabeth Warren (D-MA) added $1 million to boost ‘LatinX’ small businesses
- $880 million for ‘enhanced border security’ in the Middle East (none for our own southern border)
- $1.1 million for ‘climate resilience and equity’ in Boston, MA
- $1.6 million for EV busses on Cape Cod
- $4 million for an ‘economic justice’ lab in Connecticut
- $15 million for Egyptians’ college tuition
- Sen Jeanne Shaheen (D-NH), $2.5 million for a kayaking facility in New Hampshire
- Sen Lisa Murkowski (R-AK), $4 million for ‘Alaska King Crab Enhancement Project’
TikTok possibly banned in the U.S.?
U.S. apps/websites that are presently banned in China
Google YouTube X (formally Twitter) Instagram
Meta (formally Facebook) Zoom Linkedin Reddit Wikipedia
Realtors Settle, Possible Big Shift on Commissions
The National Assoc. of Realtors has reached a nationwide settlement of claims that the industry conspired to keep agent commissions high. The NAR agreed to abandon longstanding rules that have required most home-sale listings to include an upfront offer telling buyers’ agents how much they will get paid.
FBI Terrorist Watchlist
Southwest land border encounters
336 69 26
FY2024-2021 FY2024 FY 2017-2021
Source: U.S. Customs & Border Protection
Have you moved?
Our CPA, LaCaze Moss, will be sending out 1099’s to any of our partners who either were issued interest checks or withdrawals during the FY2023. If you have moved or changed addresses to where your 1099’s should be sent, please contact me with the new information.
Men aged 25-54 not participating in the labor force
5.8% 11.4%
1976 2022
Source: BLS
The S&P Rises 3 out of 4 years since 1926!
The S&P is up approx. 75% of the time going all the way back for almost 100 years (since 1926)!
| S&P | % advance each year |
| 20%+ | 36% |
| +10% to +20% | 21% |
| 0 to +10% | 15% |
| 0 to -10% decline | 15% |
| 10%+ decline | 13% |
Source: Dimensional Funds
And we won’t make you have a minimum of $5 Million!
J.P. Morgan Bank is offering to pay 6% interest on CDs but the catch is a minimum deposit of $5 Million plus it cannot be already at their bank. It must be brought over from another banking institution. Bena Capital has been paying a 6% interest paid monthly over 12 months, for a couple of years now. Glad to see J.P. Morgan is seeing it our way!