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

#1 USED CAR PRICES: The average price of a used vehicle in the United States in November 2021, according to Edmunds.com, was $29,011, a dizzying 39% more than just 12 months earlier.

#2 MORTGAGE RATES: The Federal Reserve is expected to raise interest rates a few times in 2022, which means mortgage rates will likely rise. Both Redfin and Realtor.com predict a 30-year-fixed mortgage rate will reach 3.60% by the end of 2022, compared to an average of 3.30% now.  

#3 BLACK GOLD: According to the CME Group, the price of oil ended 2021 at $75.21 a barrel, up +55% from its 2020 close of $48.52 a barrel. Oil’s all-time closing high price is $147.27 a barrel as of 7/11/2008.

#4 TOTAL RETURN: The total return for the S&P 500 over the last 30 years (1992-2021) was a gain of +10.6% per year. If you missed the 30 best percentage gain days over the last 30 years, the +10.6% annual gain falls to a +4.4% annual gain per BTN Research.

#5 HOME IMPROVEMENT: “Looking ahead to 2022, the home improvement sector is likely to contract modestly, given the industry benefited from both higher inflation and government stimulus in 2021. While it still remains difficult to predict the market performance precisely, we are expecting a demand decline of mid-single-digits on a mix-adjusted basis.” – David M. Denton, Executive VP, CFO & Principal Financial Officer of Lowe’s Companies

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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.

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.