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Hodges Friday Fast Five

"In the investment business, you go to school every day, but never graduate." - Don Hodges

Friday Fast Five - 6/10/2022

by Hodges Investment Team, on Jun 10, 2022 7:00:00 AM

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

#1 WORLD BANK EXPECTS GLOBAL GROWTH TO SLUMP: Global growth is expected to drop from 5.7% in 2021 to 2.9% in 2022 and is significantly lower than 4.1% that was anticipated in January. It is expected to hover around that pace over 2023-24, as the war in Ukraine disrupts activity, investment, trade in the near term, pent-up demand fades, and fiscal and monetary policy accommodation is withdrawn.   

#2 MORTGAGE DEMAND CONTINUES TO DROP: After a momentary decline in May, mortgage rates are climbing back up, and the housing market continues to suffer from a lack of listings. As a result, mortgage demand continues to drop. Total mortgage application volume fell 6.5% last week versus the previous week, and demand hit the lowest level in 22 years.

#3 EUROPEAN UNION PASSES LEGISLATION THAT COULD STIFLE APPLE’S ECOSYSTEM: Earlier this week, the EU passed legislation banning the sale of Apple’s lightning charger in the EU. Lawmakers are expected to formally approve the agreement later this year. New rules for the chargers would apply to companies in the fall of 2024.

#4 ELON MUSK WINS A BATTLE IN HIS CAMPAIGN FOR TWITTER: Twitter board agreed to give Elon Musk full access to its massive data stream including its 500M tweets posted daily. Musk was uneasy about completing the $44M deal and mentioned pulling out unless given access to the company’s data to ferret out the fake accounts from the real accounts.

#5 TACO BELL OF THE FUTURE: Taco Bell is testing a new drive through concept called Taco Bell Defy. It will have four lanes and vertical drops for food. Despite having one of the fastest drive-through ordering times in the industry, Taco Bell aims to bring the ordering time down and further improve it to 2 minutes or less. Currently, 1 out of 7 drive-through orders at Taco Bell have a problem or a mistake, so Defy will have to improve accuracy in addition to balancing speed. Taco Bell’s first Defy concept is being tested in Minnesota.

Hodges Private Client is a program offered through Hodges Capital Management, Inc. (“HCM”). HCM is an Investment Advisory Firm registered with the Securities and Exchange Commission (“SEC”), is a wholly owned subsidiary of Hodges Capital Holdings and serves as investment advisor to the Hodges Funds. HCM is affiliated with First Dallas Securities, Inc, a broker-dealer, and investment advisor registered with the SEC.

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.

Hodges Friday Fast Five

We aim to help investors separate the news from the noise by providing our perspective. Every Friday the Hodges Private Client research analysts list the five most interesting things they discovered that week. Subscribe to receive the Hodges Friday Fast Five in your inbox every Friday. 

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