Friday Fast Five - 10/21/2022
by Hodges Investment Team, on Oct 21, 2022 7:00:00 AM
Five interesting things that Hodges Capital research analysts discovered this week...
#1 HERE COMES THE BRIDE! The Wedding Report projects that 2.5M couples will get married in 2022. That's roughly +15% higher than an average year. Much of this rise is due to postponed weddings during lockdowns and case spikes.
#2 THE DOCTOR IS IN…AND SO IS THE PATIENT: According to Hedgeye, telehealth visits have fallen from 7% (as a share of all medical visits) in the spring of 2020 to 5% in July 2022. This share is expected to drop further as states reinstate cross-state telehealth restrictions waived during the pandemic.
#3 THE SHOW MUST GO ON, BUT THE CROWD ISN’T SHOWING UP: According to TRG Arts, attendance at plays and symphonies is down -32% from 2019. The demographic for this entertainment skews older and tends to be more worried about Covid-19 than younger Americans.
#4 SMALL-CAP STOCKS PROVIDE A GLIMMER OF HOPE COMING OUT OF RECESSIONS: Historically, small-cap stocks have demonstrated meaningful leadership coming out of recessions due to a higher mix of domestic economic exposure. According to data provided by Strategas, small-cap stocks, as measured by the Russell 2000, have outperformed larger-cap peers, as measured by the S&P 500, in six out of the last six recessions going back to 1980.
#5 WOOF! WOOF! MEOW! MEOW! CHA-CHING! CHA-CHING! US households are spending more on their pets as human birth rates slow. Millennials and Gen Z pet owners tend to invest more on pet wellness relative to older generations.
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This discussion is not intended to be a forecast of future events and should not be considered a recommendation to buy or sell any security. Past performance is not indicative of future results. Investing involves risk. Principal loss is possible. Investing in smaller companies involves additional risks such as limited liquidity and greater volatility. No current or prospective client should assume that information referenced in this communication is a recommendation to buy or sell any security or is a substitute for personalized investment advice from your individual advisor. HCM does not provide tax or legal advice. Consult your tax or legal advisor for any related questions.
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