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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 - 7/29/2022

by Hodges Investment Team, on Jul 29, 2022 7:00:00 AM

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

#1 RECESSION STORIES: According to Axios, we’re in a bull market for recession explainers right now, but we’re well past the peak in recession stories. In the U.S., there were 6,882 such stories in the week ending July 25, down 68% from 21,576 in the week of June 13, around the time that both gas prices and mortgage rates were peaking.

#2 HOUSING: Home prices in May were 19.7% higher compared with the same month last year, according to the S&P CoreLogic Case-Shiller National Home Price Index. This marks the second month of slower increases as the housing market cools due to higher mortgage rates and increasing concern over inflation.

#3 CONSUMER DEBT: In order to make ends meet, 43% of Americans expect to add to their debt in the next six months, especially young adults and parents with young children, according to a study by LendingTree.

#4 PRECIOUS METALS: The gold-to-silver ratio currently sits at about 93 ounces of silver, equivalent to one ounce of gold. This is after the ratio spiked to new highs of 123.3 during the COVID-19 pandemic. The Visual Capitalist notes that the gold-to-silver ratio has hovered between 14 and 100 since 1687.  

#5 QUOTE OF THE WEEK: “Patience is not just the ability to wait; it’s what you do while you’re waiting. We have remained disciplined and implemented our defensive initiatives: not making low-rate loans, not deploying all of our cash in low-rate securities, paying off debt, and managing our loan-to-deposit ratio, among other things. As it appears, the pendulum is about to swing back toward defensive stocks from growth stocks, and when it does, HOMB is sitting in the catbird seat.” - John Allison, Chairman of Home Bancshares


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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