Five interesting things that Hodges Capital research analysts discovered this week...
#1 CONSUMER CREDIT USAGE: Consumer credit card usage has increased over the past year. However, according to Strategas, the consumer is not tapped out yet, with revolving credit as a percentage of disposable income at 6.2% compared to an average of 6.6% from 2012 to 2019.
#2 CEO PAY: Barrons recently reported that the average annual pay of an S&P 500 CEO is $14.5 million compared to the equivalent of $4.5 million for a CEO in the London-based FTSE 100.
#3 GEN Z CONSUMER TRENDS: A recent survey of teens conducted by Piper Sandler indicated that for upper-income teens, food was the number one priority for male spending at 24% of wallet share, while clothing remains at the top of female wallet share at 28%, down from 30% last Fall.
#4 AMERICAN PESSIMISM: A recent Wall Street Journal survey has revealed that pessimism among Americans is at a record high. In addition to being stressed about their immediate financial situation, 78% of adults said they are not confident that their children’s lives will be better than their own, up 11% from 2019.
#5 MEATPACKERS: University of California/Davis data estimates that four firms process 85% of US beef. A lack of competition among meatpackers, drought, and rising input costs has weighed on the profits of cattle producers over the past several years.
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