Five interesting things that Hodges Capital research analysts discovered this week...
#1 HERE COMES THE BRIDE! The Wedding Report projects that 2.5M couples will get married in 2022. That's roughly +15% higher than an average year. Much of this rise is due to postponed weddings during lockdowns and case spikes.
#2 THE DOCTOR IS IN…AND SO IS THE PATIENT: According to Hedgeye, telehealth visits have fallen from 7% (as a share of all medical visits) in the spring of 2020 to 5% in July 2022. This share is expected to drop further as states reinstate cross-state telehealth restrictions waived during the pandemic.
#3 THE SHOW MUST GO ON, BUT THE CROWD ISN’T SHOWING UP: According to TRG Arts, attendance at plays and symphonies is down -32% from 2019. The demographic for this entertainment skews older and tends to be more worried about Covid-19 than younger Americans.
#4 SMALL-CAP STOCKS PROVIDE A GLIMMER OF HOPE COMING OUT OF RECESSIONS: Historically, small-cap stocks have demonstrated meaningful leadership coming out of recessions due to a higher mix of domestic economic exposure. According to data provided by Strategas, small-cap stocks, as measured by the Russell 2000, have outperformed larger-cap peers, as measured by the S&P 500, in six out of the last six recessions going back to 1980.
#5 WOOF! WOOF! MEOW! MEOW! CHA-CHING! CHA-CHING! US households are spending more on their pets as human birth rates slow. Millennials and Gen Z pet owners tend to invest more on pet wellness relative to older generations.
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