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Hodges Friday Fast Five

"In the investment business, you go to school every day, but never graduate." - Don Hodges

Friday Fast Five - 11/05/2021

by Hodges Investment Team, on Nov 5, 2021 10:00:00 AM

Five interesting things that Hodges Capital research analysts discovered this week...

#1 DRY POWDER: In October, consumers' balance sheets remain flush with personal saving rates at 7.5% as a percentage of disposable income. While inflation is creating a headwind for consumption, U.S. consumers remain in an excellent position to support demand for discretionary consumption during the upcoming Holiday season.

#2 REUSABLE PACKING: Many well-known fast-food restaurants and grocery stores are testing out reusable packaging. According to one test of 191 stores and restaurants reported by the Associated Press, 80% of those customers who opted for reusable packaging returned it within 60 days.

#3 GOT LITHIUM? Data provided by Strategas estimates that the amount of Lithium needed to build 20 million Tesla vehicles would amount to 127,302 tons, which is 165% greater than the estimated 2019 worldwide Lithium production of 77,000 tons. Lithium, graphite, nickel, and cobalt used in electric vehicle batteries are in limited supply and could see significant demand in the years ahead.

#4 TEXAFORNIA: A new report from the Texas Real Estate Research Center at Texas A&M found that one out of ten people moving to Texas during the pandemic came from California. Furthermore, the report also indicated that in 19 of the past 20 years, California ranked as the top state for people relocating to Texas. The only exception was Louisiana in 2005 after Hurricane Katrina.  

#5 STILL TELECOMMUTING: According to the Wall Street Journal, the share of workers returning to the office in the U.S. has reached a pandemic height at roughly 36% of those surveyed.

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Hodges Private Client is a program offered through Hodges Capital Management, Inc. (“HCM”). HCM is an Investment Advisory Firm registered with the Securities and Exchange Commission (“SEC”), is a wholly owned subsidiary of Hodges Capital Holdings and serves as investment advisor to the Hodges Funds. HCM is affiliated with First Dallas Securities, Inc, a broker-dealer, and investment advisor registered with the SEC.

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.

All information referenced herein is from sources believed to be reliable and is provided as general market commentary and does not constitute investment advice. This material was created for informational purposes only and the opinions expressed are solely those of HCM. HCM shall not in any way be liable for claims and makes no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information. The data and information are provided as of the date referenced and are subject to change without notice.

Hodges Friday Fast Five

We aim to help investors separate the news from the noise by providing our perspective. Every Friday the Hodges Private Client research analysts list the five most interesting things they discovered that week. Subscribe to receive the Hodges Friday Fast Five in your inbox every Friday. 

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