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

#1 TAX REVENUE: According to Strategas, April tax revenues surged due to a 30% increase in non-withheld income tax revenue from capital gains. This spike could help reduce the federal deficit. However, large-scale deficit reduction will likely require a decrease in federal spending.

#2 LITHIUM BATTERIES: The most recent data from S&P Global estimates that China now manufactures approximately 75% of the world’s lithium-ion batteries, which are essential for electric vehicles and energy storage systems. This dominance stems from China’s control of more than 60% of global processing for battery-grade lithium.

#3 STUDENT DEBT: Roughly 5.3 million borrowers are currently in default on their federal student loans and face renewed pressure as the Department of Education plans to resume collections next month. This move marks the end of a years-long pause and raises concerns about the financial strain on borrowers still recovering from pandemic-related hardships.

#4 YELLOW METAL: Gold prices soared to a historic high of $3,500 per ounce this week, driven by a flight to safe-haven assets. This milestone surpasses the previous inflation-adjusted peak from 1980, underscoring gold’s role as a refuge during times of economic and political uncertainty.

#5 MAKE AMERICA HEALTHY AGAIN: The Department of Health and Human Services (HHS) is undergoing a major restructuring as part of a government efficiency initiative. Key agencies—including the FDA, CDC, NIH, and CMS—will experience targeted staff reductions aimed at centralizing administrative functions without disrupting core services. A new entity, the Administration for a Healthy America (AHA), will consolidate several agencies to better coordinate programs focused on chronic disease and low-income health.

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