“Guess Who's Coming to Dinner!”

Hi There! Gratitude is a must! As a child, Ms. Junie (my mom) taught me to start and end each day by giving thanks. This simple practice has stayed with me ever since. When obstacles come my way, I find myself shifting to gratitude for the lessons they bring. That mindset has become my compass, guiding me through each day.

If you ask me, the world could use more gratitude, not just on Thanksgiving Day, but every single day. While I don’t personally celebrate Thanksgiving, this time of year feels like the perfect opportunity to reflect on life’s many blessings. Gratitude is powerful! To me, it’s the framework of my purpose, an acknowledgment of the people, challenges, and encounters that add meaning to my journey. Even the smallest expressions of thanks can compound over time, creating a more fulfilling and peaceful life.

So, I encourage you to fill up your “gratitude banks”. Deposit gratitude into every interaction and situation, and watch how it transforms your perspective and the world around you. Small actions can lead to big changes. And speaking of gratitude, I want to say how incredibly thankful I am for each of you. Your weekly commitment, feedback, and engagement make the Rhoda Report a true community.

Oh, and one more thing… Go Cowboys! 🏈

Alright, let’s dig in!

Last Week’s Market Overview (November 17 - November 22, 2024)

Markets rebounded last week, with the three major indexes finishing slightly higher despite mixed economic data and geopolitical tensions. The S&P 500 gained 1.68%, the Dow rose 1.96%, and the Nasdaq advanced 1.73%. Small caps outperformed, rallying over 4%.

Key drivers included Nvidia’s much-anticipated earnings report, which delivered an upbeat take on artificial intelligence (AI) despite underwhelming guidance, and mixed signals from the retail sector as Walmart surged on strong earnings while Target tumbled after slashing guidance. Meanwhile, escalating geopolitical tensions in Ukraine and a rising U.S. dollar continued to influence market sentiment.

U.S. Markets Recap

Equities: Earnings took center stage. Nvidia’s (NVDA) earnings beat expectations, and Walmart’s (WMT) stellar results boosted its stock sharply higher. On the downside, Target’s (TGT) weak performance weighed on its shares, which fell over 17%. Despite intra-week volatility, all three major indexes posted weekly gains as growth and value stocks rose together.

Fixed Income: Treasury yields ended mixed. The 10-year yield dipped slightly, closing three basis points lower, while the two-year yield rose six basis points. A lackluster Treasury auction highlighted ongoing concerns about elevated U.S. debt levels and weak demand. Primary dealer balance sheets remain under strain, raising speculation about the Federal Reserve’s potential response to stabilize the market. 

Commodities: The Bloomberg Commodities Index climbed over 3% last week. Crude oil surged 6% due to heightened geopolitical risks and robust U.S. demand, while gold extended its recovery, buoyed by safe-haven demand following renewed missile strikes in Ukraine. Silver and copper also posted modest gains.

Currencies: The U.S. dollar rallied to two-year highs, supported by strong economic data and rising Treasury yields. The euro weakened on disappointing European economic data, while the yen remained under pressure amid speculation about further stimulus measures in Japan.

U.S. Economic Recap (November 17 - November 22, 2024)

• Housing Affordability: Existing home sales rose 3% in October, marking an improvement in affordability as median incomes climbed. However, the pace of sales remains well below pre-pandemic levels, and limited housing supply continues to constrain the market.

• Housing Starts: October saw a second consecutive decline in housing starts as homebuilders paused projects amid election uncertainties and severe weather disruptions in the Southeast. However, recent surveys suggest a rebound in homebuilder confidence, pointing to a more optimistic near-term outlook.

• Key Inflation Data: Both consumer and producer price indexes aligned with expectations, indicating steady inflation trends. Sticky components of inflation, such as shelter costs, continue to ease, giving the Fed room to maintain its gradual rate-cutting approach.

Global Markets Recap (November 17 - November 22, 2024)

Europe: European stocks closed higher, lifted by healthcare and real estate gains despite weak macro data. Eurozone composite PMI indicated a contraction in services, while U.K. PMI highlighted declines in both manufacturing and services. Germany’s GDP was revised lower, and French composite PMI fell below expectations. Rate cut bets buoyed sentiment, helping offset geopolitical and economic concerns.

Asia: Asian markets ended mixed. Japan slipped slightly despite a $141.9 billion fiscal stimulus package aimed at boosting low-income households and energy subsidies. Greater China’s weekly gains were erased after tech stocks fell on disappointing earnings from Baidu and others. India rallied on Friday, with losses tied to the indictment of Gautam Adani over bribery allegations.

Crypto Recap (November 17 - November 22, 2024)

• Bitcoin Hits Record Highs: Bitcoin surged to a record $98,000, with its market cap nearing $1.94 trillion. It also surpassed gold in performance since 2021, up 55% versus gold’s 46% gain. As of last week, Bitcoin officially broke records against major U.S. benchmarks like the Dow, S&P 500, and Nasdaq 100.

• SEC Chief Resignation: SEC Chair Gary Gensler announced his resignation effective January 20. His tenure was marked by regulatory clashes with the crypto industry, and the announcement has sparked optimism for a more crypto-friendly environment under the incoming administration.

• Spot Solana ETF Progress: Discussions with the SEC on a Solana ETF are reportedly advancing, with multiple issuers filing applications. Industry optimism is growing for potential approval in 2025, fueled by pro-crypto sentiment from the Trump administration.

• Among Last Week’s Top Crypto Gainers: XLM, SAND, MANA, CHILLGUY

Here are other key highlights from last week:

• AI tokens (NEAR, RENDER, ICP) rebound amid Bitcoin rally.

• Strip and Circle’s USDC integrate into Aptos ecosystem.

• Pac-Man NFTs to fuel Pokémon Go-Like scavenger hunt in Tokyo.

• Traders pile into popular NFT collection CryptoPunks.

• Polygon’s whale activity surged, but can it pull POL out of the woods?

This is a very short week in the markets!

Key U.S. Economic Releases This Week:

• Mon:

  • Richmond Manufacturing Index: Missed expectations.

• Tues:

  • Consumer Confidence: Declined, reflecting weakening sentiment.

  • New Home Sales: A huge miss, showed softness in housing demand.

  • FOMC Minutes: Highlighted the least hawkish tone in two years.

• Wed:

  • Q3 GDP: In line with expectations.

  • Jobless Claims: Beat forecasts.

  • Durable Goods Orders: Exceeded expectations.

  • Q3 Consumer Spending: Missed projections.

  • Chicago PMI: Fell short of estimates.

  • Core PCE Inflation: Matched expectation.

  • Pending Home Sales: Surpassed expectations.

  • Personal Spending & Income: Spending was in line, income exceeded.

No Fed speakers this week!

Thanksgiving Reminder The U.S. stock market will be closed Thursday for Thanksgiving, with reduced trading hours on Friday.

Earnings:

Key earnings are outlined in red in the chart below.

Global Economic Events This Week:

• Monday (11/25): New Zealand Retail Sales, Germany ifo Business Climate Report.

• Tuesday (11/26): Australia CPI, RBNZ Interest Rate Decision.

• Wednesday (11/27): Japan CPI, RBA Gov Bullock Speaks.

• Thursday (11/28): RBA Governor Bullock Speaks

• Friday (11/29): Switzerland GDP, BoE Gov Bailey Speaks, Canada GDP, China Manufacturing and Non-Manufacturing PMI.

Trading Tip:

“6G-Related Companies to Watch - ERIC, QCOM, AAPL!"

Week 11/17/24 - 11/22/24 Recap

Special Tools and Strategies

How to Invest in Crypto

In last week’s issue (#107), I covered essential crypto concepts to help you navigate this exciting space. This week, I am building on that foundation to guide you on how to invest in crypto.

Three Key Points to Consider When Buying Crypto

1. Payment

   How will you buy crypto? Payment methods range from bank transfers and credit cards to payment apps like PayPal, CashApp, and even cash transactions. Each method has its own convenience, privacy, and fee considerations.

   Example: Using a credit card may be quick but comes with higher fees, while bank transfers (through a crypto-friendly bank) are often cheaper but may take longer to process.

2. Platform

   Where will you buy your crypto? Where you buy your crypto matters. Platforms include centralized exchanges (e.g., Coinbase, Gemini), peer-to-peer marketplaces, Over-the-counter (OTC) desks, and even face-to-face transactions.

   Example: Centralized exchanges like Coinbase or Gemini offer a user-friendly experience for beginners, while OTC desks cater to high-net-worth individuals seeking private transactions.

3. Storage

   Where will you store your crypto? Decide whether to store your crypto in a self-custodial wallet (where you control your keys) or a custodial wallet (managed by an exchange).

   Example: A self-custodial wallet like MetaMask or Atomic Wallet gives you full control, while keeping your funds on Coinbase is convenient but means the platform controls access.

A Quick Reminder: Not Your Keys, Not Your Cheese!

Owning your crypto in a self-custodial wallet gives you full control. While custodial wallets are convenient, they may limit how and when you can access your assets.

Five Steps to Start Investing in Crypto

Here’s a simple step-by-step guide for beginners entering the crypto market:

1. Choose What Cryptocurrency to Invest In

Research different cryptocurrencies based on their purpose, technology, and potential. For instance:

• Bitcoin (BTC) is seen as digital gold.

• Ethereum (ETH) powers smart contracts and decentralized apps. Avoid coins heavily promoted on social media, as they may be scams or pump-and-dump schemes.

Tip: Starting with a well-established crypto like Bitcoin or Ethereum is a safer bet.

2. Select a Cryptocurrency Exchange

Choose a reputable platform like Coinbase, Binance, or Gemini. Compare factors like:

• Security: Does the platform offer two-factor authentication (2FA) and insurance?

• Fees: Are transaction costs reasonable?

• Supported Coins: Does the exchange support the cryptocurrencies you’re interested in?

Tip: If you prioritize low fees, platforms like Binance might be ideal. For beginners, Coinbase offers user-friendly interfaces.

3. Consider Storage and Digital Wallet Options

Decide where to store your crypto:

• Hot Wallets: Online wallets for quick access (e.g., MetaMask, Atomic Wallet).

• Cold Wallets: Offline devices like hardware wallets (e.g., Ledger Nano) for maximum security.

Tip: If you’re planning to hold long-term, cold wallets provide better protection from hackers. Be sure you are purchasing these directly from the manufacturer and not a third party like Amazon or Temu.

4. Decide How Much to Invest

Start small. Only invest what you can afford to lose, given crypto’s volatility.

• Many exchanges allow you to buy fractions of a coin. For example, you can invest $100 in Bitcoin instead of purchasing a whole coin.

Tip: If your total portfolio is $10,000, limit your crypto exposure to 2–5%.

5. Stay Informed and Manage Your Investments Wisely

Crypto markets are highly volatile. Monitor your portfolio and stay updated on news.

• Stay informed about market trends.

• Reassess your investments regularly to align with your goals.

Tip: Use platforms like CoinGecko to track prices and set alerts for significant market movements.

Investing in cryptocurrency can be a rewarding journey, but it’s one that calls for thoughtful planning and consistent management. Before starting, take a moment to reflect on your investor type (as discussed in Issue # 102) and how it shapes your approach to the market. If you're a cautious, long-term investor looking for steady growth or a bold, risk-taking trader aiming for short-term gains, understanding the fundamentals of crypto is very important. With the right knowledge and strategy, you can confidently navigate this fast-evolving market.

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.