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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 - 4/29/2022

by Hodges Investment Team, on Apr 29, 2022 8:00:00 AM

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

#1 U.S. CONSUMERS: A recent report published by Deutsche Bank highlighted that U.S. households' cash now exceeds households' debt for the first time in three decades. Although there is a clear distributional bias among upper-end consumers, negative net debt could fuel consumption in the wake of higher interest rates and inflationary pressures.

#2 WHERE ARE THE BULLS? Recent sentiment indicators have shown that individual investors have become much more defensive. Last week, the number of bullish investors in the AAII survey fell to a 30-year low, below where it was during the pandemic or the global financial crisis. Such bearish positioning could be a bullish contrarian signal for markets over the next twelve months.

#3 HOME SALES: U.S. existing home sales fell 2.7% month-over-month to 5.8 million units, representing the lowest level since June 2020. The National Association of Realtors expects home sales to contract by 10% this year as rising mortgage rates and inflation adversely impact purchasing power.  

#4 NAT GAS: Last week, Bromander reported that domestic natural gas storage levels were 18% below the five-year average. Lower inventories could support higher prices as the Russia-Ukraine war increases demand for U.S. liquefied natural gas (LNG) exported to Europe.

#5 COPPER INTENSITY: According to the International Copper Association, long-term demand for copper appears to be supported by renewable energy, which uses 4-5X more copper than fossil fuel power generation. In addition, more than 65% of the world's copper is used in applications that deliver electricity.


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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