“Do the Math!”

Hi There! If you ever want to feel your spirit lift and your soul vibrate at its highest, listen to steel pan music. Better yet, immerse yourself in hours of its sweet melodies. That’s exactly what I did this past weekend, watching as a young man unit the entire Caribbean. Trinidadian Joshua Regrello, known as "De Pan Man," played his tenor pan for 31 hours straight, setting a Guinness World Record and leaving behind a trail of inspiration for generations to follow.

The steel pan is a heartbeat. Its sound soothes wounds we don’t even realize we’re carrying. It energizes, vaporizes negativity, and connects us to our ancestors in ways words can’t explain. When the steel talks, people from all walks of life listen. The steel pan makes our challenges feel small and fills us with hope. It reminds us, as Caribbean people that we are magic.

Watching Joshua’s feat was witnessing community, discipline, and perseverance in action. This was about daring to dream, working hard, and showing respect for an instrument born from the ingenuity of Trinidad & Tobago.

To Joshua, and my friends and family in Trinidad, I say: take a bow. You’ve done more than make history; you’ve sent a message of greatness to all of us. As a proud Grenadian and fellow pan player, I feel deeply connected to this win. Together, we’ve affirmed what we’ve always known: the steel pan is the greatest instrument in the world.

This was history. This was determination. This was legendary.

Alright, let’s dig in!

Last Week’s Market Overview (December 22 - December 28, 2024)

The anticipated Santa Claus rally fizzled, leaving U.S. equity markets to close the holiday-shortened week with moderate gains amid low trading volumes. The S&P 500, Dow, and Nasdaq posted slight advances as investors reflected on a stellar year for stocks. Treasury yields rose on the longer end of the curve, while commodities faced mixed results. With just two trading days left in 2024, markets are poised to review a year marked by robust sector gains and policy shifts.

U.S. Markets Recap

Equities: Major indexes saw modest weekly gains:

• S&P 500: +0.7%

• Dow: +0.4%

• Nasdaq: +0.8%

• Russell 2000: +0.1%

For 2024, the S&P 500 has surged 26.9%, led by Communication Services (+42.7%) and Consumer Discretionary (+33.6%). Materials lagged, up just 0.9%, with Health Care struggling at +3.6%. Big movers included Meta (+70.1% YTD), Amazon (+47.3%), and Moderna (-59.7%).

Last week’s sector performance was mixed, with Energy and Health Care leading gains while Industrials and Consumer Staples lagged. Qualcomm surged 3.5% on a legal win, and Nordstrom agreed to a $6.2 billion buyout, pushing its shares higher.

Fixed Income: Treasury yields climbed on the long end of the curve, reflecting higher demand for risk premiums in long-term debt. The 10-year yield rose to 4.62%, while the spread between the 10-year and 2-year yields widened to 31 basis points, the steepest since mid-2022.

Commodities:

• Gold: -0.7%, ending at $2,635 per ounce.

• Crude Oil: +1%, buoyed by supply concerns.

Currencies: The U.S. Dollar Index gained 0.4% last week, driven by strength against the yen (+0.9%). The euro remained near two-year lows, declining 0.02% against the dollar.

U.S. Economic Recap (December 22 - December 28, 2024)

• Consumer Confidence: December's index fell to 104.7, below expectations.

• Durable Goods Orders: Dropped 1.1% in November, missing forecasts.

• New Home Sales: Met expectations with a month-over-month increase, indicating an implacable housing market.

Global Markets Recap (December 22 - December 28, 2024)

• Europe: European equities faced headwinds as economic growth forecasts for 2025 and 2026 were downgraded. Political uncertainty in Germany added pressure after Chancellor Scholz dissolved parliament, triggering early elections. Meanwhile, the U.K. economy stagnated in Q3, with GDP flat amid weak industrial output.

• Asia: Japan’s fiscal budget for 2025 hit a record ¥115.5 trillion, focusing on defense and regional development. Inflation in Tokyo accelerated to 2.4%, while industrial production slipped 2.3%. In China, the government announced robust fiscal measures, including a 4% GDP deficit target for 2025, to counter slowing growth and incoming U.S. tariffs.

Crypto Recap (December 22 - December 28, 2024)

• Bitcoin Retreats: Bitcoin fell 3% last week, closing near $94,000, as the broader crypto market faced headwinds. The global cryptocurrency market cap dropped to $3.67 trillion (-7.6%).

• President-elect Trump’s administration announced key appointees including Bo Hines, Stephen Miran, and Sriram Krishnan to shape digital asset and AI policy, signaling support for the industry.

• Tether invested $775 million in video platform Rumble, fueling optimism about crypto’s integration with mainstream technology.

• Last week’s top crypto gainers: PENGU and VIRTUAL

Here are other key highlights from last week:

• Blockchain and AI can enable advanced personalization in healthcare.

• Women led the charge in Blockchain gaming optimism.

• NFTs in 2024: Surviving challenges, embracing growth, eyeing the future.

• Aave poised to leave Polygon blockchain.

Another short week in the markets!

Key U.S. Economic Releases to Watch This Week:

1. Chicago PMI (Mon.)

2. Pending Home Sales (Mon.)

3. House Price Index (Tues.)

4. Jobless Claims (Thurs.)

5. Tesla Q4 Deliveries (Thurs.)

6. ISM Manufacturing PMI (Fri.)

7. Vehicle Sales (Fri.)

Fed speakers this week:

• FOMC Member Barkin is scheduled to speak at the First Friday Economic Outlook Forum, in Maryland of Friday.

Earnings:

No notable earnings this week.

Global Economic Events This Week:

• Monday: China Manufacturing and Non-Manufacturing PMI

Trading Tip:

“The stock market is typically bearish on the last trading day of the year!”

Week 12/22/24 - 12/28/24 Recap

Special Tools and Strategies - Guard Your Crypto!

Crypto thefts happen, and new investors are often the most affected. In 2024 alone, $2.2 billion was lost to crypto hacks. Hackers frequently target those who haven’t taken the necessary steps to secure their assets. The takeaway? Crypto security isn’t optional, it is absolutely essential.

To help you safeguard your investments and stay ahead of potential threats, here are some practical tips to protect your crypto.

Core Security Principles: Building a Strong Foundation

1. What is Crypto Security?

Crypto security involves protecting your digital assets from theft, loss, and unauthorized access. Think of it like safeguarding your cash in a bank vault, but with extra layers of digital protection. In crypto, you are your own bank, which means the responsibility lies entirely with you.

2. Basic Storage and Protection Principles

• Always assume responsibility for your private keys (your access codes).

• Use multiple layers of security, such as strong passwords, two-factor authentication, and hardware wallets (discussed in Issue #110).

• Diversify your storage methods to minimize risk.

3. The Golden Rule: “Not Your Keys, Not Your Coins”

If you don’t control your private keys, you don’t truly own your cryptocurrency. This is why using external wallets instead of leaving your funds on exchanges is important.

Top Security Tools and Approaches

1. Two-Factor Authentication (2FA)

• Adds a second layer of protection by requiring a code sent to your phone or generated by an app.

• Setup Tip: Use apps like Google Authenticator or Authy instead of SMS-based 2FA, which can be compromised.

2. Password Managers

• Generate and store strong, unique passwords for your wallets and accounts.

• Recommended Tools: Dashlane or Bitwarden.

3. Virtual Private Networks (VPNs)

• Encrypts your internet connection to protect against hackers, especially on public Wi-Fi.

• Best For: Accessing wallets or exchanges securely from any location.

4. Anti-Phishing Measures

• How It Works: Hackers mimic legitimate sites or apps to steal your information.

• Prevention Tips:

  • Bookmark official websites for wallets and exchanges.

  • Double-check URLs before entering sensitive information.

Backup and Recovery: Planning for the Worst

1. Seed Phrases

• A set of 12–24 words that acts as a backup for your wallet.

• Do This: Write it down on paper (don’t store it digitally) and keep it in a secure location.

2. Redundancy is Key

• Create multiple backups of your seed phrase. Store them in different secure locations.

3. Test Recovery Process

• Before transferring significant funds, test your ability to recover your wallet using the seed phrase.

Key Security Tips for Everyday Investors

1. Diversify Your Storage:

   • Keep trading funds on an exchange, but transfer long-term holdings to a cold wallet.

2. Avoid Sharing Sensitive Information:

   • Never share your private keys or seed phrase, even with “customer support.”

3. Beware of Scams:

   • Be cautious of unsolicited messages, fake social media accounts, fake giveaways, fake airdrops in your wallets, and promises of guaranteed returns. If it is too good to be true it probably is.

4. Stay Updated:

   • Security threats evolve. Follow reputable sources to stay informed about the latest scams and tools.

5. Limit Public Wi-Fi Usage:

   • If you must use public Wi-Fi, always activate a VPN.

Take Control of Your Security

Crypto security is an ongoing commitment. By implementing the strategies outlined here, you can trade and invest with peace of mind, knowing your assets are protected. Remember, the crypto market rewards informed and cautious investors. Take the first step today by reviewing your wallet setup and ensuring your funds are secure. A secure wallet setup, combined with vigilant habits, can go a long way in protecting your assets.

Disclaimer: This newsletter is strictly educational. The information this report provides does not constitute investment, financial, trading, or any other advice. You should not treat any of the report’s content as such. Please be careful and do your research.