Five interesting things that Hodges Capital research analysts discovered this week...
#1 MANUAL TRANSMISSION: In 2000, more than 15% of new and used cars sold by the auto retailer CarMax came with stick shifts; by 2020, that figure had dropped to 2.4% according to The Atlantic.
#2 BIG GOVERNMENT: According to Strategas, federal tax revenues as a percentage of GDP are at their highest post-WWII level ever, at 20%. In the past, tax revenues of 19.3% of GDP or greater have allowed the US government to post a budget surplus, and the US government is currently running a deficit of 4% of GDP.
#3 CANADA HOUSING: The housing downturn in Canada is gaining momentum in some key Canadian markets according to Hedgeye. Toronto home sales fell -47% Y/Y in July and the home price index fell -4% M/M. Vancouver home sales fell similarly in July coming in at -43% Y/Y with home prices down -2.3% M/M.
#4 USED VEHICLES: Manheim Consulting released its Used Vehicle Value Index for July. The overall headline result was down 0.1% vs. June levels. On a Y/Y basis, used vehicle prices rose 12.5% on a +23.5% comp. By class type (Y/Y change): Compact +18.3%, Midsize +15.3%, Luxury +9.3%, Pickups +5.9%, SUV/CUV +11.3%, and Vans +22.9%.
#5 QUOTE OF THE WEEK: “As every barrel of oil, on average, is slightly more marginal than the last, being deeper in the ground etc., it requires more of its own specific energy in its own extraction. With more than 50% of the Specific Energy of a barrel of oil now already being used, without other energy sources to fuel production, this would infer that production and GDP have peaked with all its economic, social, and political implications.” - Andrew Lees, Macro Strategy Partnership
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