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

#1 ACTIVE MANAGEMENT: As 2021 draws to a close, the Wall Street Journal has reported that 85% of active managers are on pace to underperform the S&P 500 this year.

#2 RETIREMENT WORRIES: Despite uncertainties associated with the pandemic, a recent study conducted by Allianz Life showed that Americans see rising inflation as the most significant risk to their retirement plans.      

#3 COVID-19: The CDC has reduced the quarantine isolation time from ten days to five days this week. Although the number of new cases is now approaching record levels, the reduction in quarantine and the severity rate of new variants could be positive for travel-rated stocks in 2022.

#4 CRYPTO CRAZE: While there is no shortage of debate over cryptocurrencies such as Bitcoin, the market capitalization of the entire crypto universe has increased to more than $2.2 trillion at the end of 2021 from $200 billion in 2019.      

#5 HOLY GUACAMOLE: Average selling prices for fresh avocados are up 37% year-over-year, while production is down roughly 7% due to a sub-optimal crop this year in both California and Mexico.

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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.

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