“Now We're Here!”

Hi There! While going through some old photos recently, I stumbled upon memories of my very first trip to Molinere Bay to see something truly magical—Grenada’s Underwater Sculpture Park . Yes, you read that right—sculptures under the water! Nestled off the west coast of Grenada in the crystal-clear Caribbean waters, this awe-inspiring site is the world’s first underwater sculpture park, created by British artist Jason deCaires Taylor in 2006. Recognized as one of National Geographic’s “25 Wonders of the World,” it was designed not only to captivate but also to heal. After Hurricane Ivan devastated Grenada in 2004, the park's sculptures were installed to help regenerate the marine environment.

Imagine descending just a few meters below the surface to find over 75 breathtaking sculptures, each with its own story rooted in Grenadian culture and history. From Vicissitudes, a striking ring of children holding hands, to The Lost Correspondent, a haunting reflection on the passage of time, these pieces are not only works of art but also thriving reefs teeming with marine life. Coral growth, marine biodiversity, and ocean currents shape the sculptures over time, making each visit to the park a truly unique experience.

This underwater marvel is a living, breathing testament to my island’s culture, resilience, and dedication to sustainability.

 Alright, let’s dig in!

Last Week’s Market Overview (November 10 - November 16, 2024)

Markets faced turbulence last week, with U.S. equities sliding as post-election momentum waned. Investors reacted to Federal Reserve (Fed) Chair Jerome Powell’s hawkish stance on rate cuts while parsing mixed inflation data. The S&P 500 fell 2.2%, the Nasdaq dropped 3.5%, and the Dow declined 1.4%. Globally, European and Asian markets struggled amid ongoing U.S.-China trade concerns and uncertainty over the new U.S. administration’s policies. Commodities softened, with oil and gold declining as Treasury yields rose alongside a surging U.S. dollar.

U.S. Markets Recap

Equities

• The S&P 500 hit a record high early in the week, crossing 6,000 for the first time before slipping.

• Tech-heavy Nasdaq faced steep losses (-3.5%), while small caps saw muted performance.

• Notable earnings included Disney (DIS), which beat expectations and raised guidance, and Dutch chipmaker ASML, which issued a positive outlook despite global semiconductor volatility.

Fixed Income:

• Treasury yields surged, with the 10-year up 11 basis points, driven by Powell’s comments signaling no rush for further rate cuts.

• Interest rate swaps project a 4% Fed funds rate over the next 20 years, implying limited cuts and sustained higher yields.

• The Bloomberg U.S. Aggregate Index ended the week lower as bond market participants grappled with the Fed’s cautious tone.

Commodities:

• Crude oil slipped nearly 5% as China’s economic slowdown weighed on demand.

• Gold continued its decline under the pressure of rising yields and a strong dollar.

• Silver and copper posted weekly losses, with silver seeing sharper declines.

Currencies:

The U.S. dollar rallied, supported by rising Treasury yields and speculation of prolonged higher rates. Both the yen and euro weakened against the greenback, while dollar-denominated emerging market currencies faced increased pressure.

U.S. Economic Recap (November 10 - November 16, 2024)

Producer Price Index (PPI): October’s PPI rose 0.2% month-over-month, with core prices up 0.3%, reflecting inflationary pressure from tariffs and supply chain disruptions.

Consumer Price Index (CPI): CPI increased by 0.2% month-over-month, consistent with prior months, while the annual rate ticked up to 2.6%. Sticky components of inflation eased, suggesting the Fed may cut rates in December or January.

Global Markets Recap (November 10 - November 16, 2024)

Europe:

• European equities fell, with losses exacerbated by uncertainty over potential U.S. tariffs.

• Germany’s Chancellor Scholz called for a snap election, fueling volatility despite GDP data meeting expectations.

• Novo Nordisk and Richemont stocks struggled, while Siemens and Continental offered bright spots.

Asia:

• Asian markets saw broad declines, with China’s lackluster economic data and delayed stimulus weighing heavily.

• South Korea dropped nearly 6%, while Japan faced its sharpest losses midweek due to inflation concerns.

• Hong Kong tech stocks, including Tencent and JD.com, slumped after mixed earnings.

Crypto Recap (November 10 - November 16, 2024)

• Bitcoin soared to record highs, breaking $93,000 amid strong U.S. investor demand and robust institutional activity.

• BlackRock’s iShares Bitcoin ETF (IBIT) became the fourth-most traded ETF, with $1.2 billion in volume during the session.

• Bitcoin Flips Silver Again. Bitcoin’s market cap hit $1.75 trillion, overtaking silver to become the eighth-largest global asset.

• Last Week’s Top Crypto Gainers: OM, XRP, DOGE

Here are other key highlights from last week:

• Mobile Crypto Apps are climbing the charts as Bitcoin blasts Off.

• Peaq soars as trading goes live on 12 crypto exchanges.

• CryptoPunk prices surge as Bitcoin gains help pump NFT market.

• BlackRock expands its tokenized money market fund to Polygon.

All eyes on NVIDIA Earnings this week!

Key U.S. Economic Releases This Week:

• Tues: Building Permits & Housing Starts

• Thurs: Jobless Claims, Philly Fed Manufacturing Index

• Fri: PMIs & Consumer Sentiment

Fed Speakers:

• Mon: Goolsbee flagged risks in Treasury clearing concentration.

• Tues: Schmid emphasized uncertainty about rate cuts but highlighted inflation progress and the Fed’s role in managing deficits.

• Wed: Cook and Bowman will address inflation and employment trends.

• Thurs: Hammack, Goolsbee, and Barr speak on policy and economic outlook.

• Fri: Bowman wraps up the week’s discussions.

Earnings:

• Target ($TGT) missed expectations, citing softer consumer demand for home goods and apparel.

• Walmart ($WMT) outperformed, reporting strong revenue and raising its 2025 growth forecast.

• NVIDIA ($NVDA): Record Q3 revenue of $35.1 billion but shares slipped 3.5% on underwhelming Q4 guidance.

Other key earnings are outlined in red in the chart below.

Global Economic Events This Week:

• Monday (11/18): G20 Meeting, ECB President Lagarde Speaks

• Tuesday (11/19): Canada CPI, China Loan Prime Rates

• Wednesday (11/20): UK CPI, ECB Financial Stability Review

• Thursday (11/21): RBA Governor Bullock Speaks

• Friday (11/22): EuroArea & UK PMIs, Canada Retail Sales

Trading Tip:

"Sell your losers and let your winners ride to maximize gains!"

Week 11/10/24 - 11/16/24 Recap

Special Tools and Strategies

Getting Started in Crypto: Tips for Beginners

You’ve seen the buzz — Bitcoin hitting new highs, conversations about it possibly reaching $100K, and crypto enthusiasts excitedly discussing the market’s next big moves. Naturally, many beginners are asking, “Where do I start?” or even, “Is it too late to get in?” Meanwhile, scammers are busy promising overnight riches to those new to the space.

Let’s clear up the confusion: crypto is an exciting opportunity, but it requires informed, careful steps. If you’re curious about crypto, congratulations—you’re already on the path to learning. Before you invest, you must do your own research, understand your goals, and decide what role crypto plays in your financial strategy. As discussed in previous issues (See Issue #100 for a list), understanding crypto projects, risks, and strategies is key to making the most of this opportunity.

Now, let’s look at the basics to ensure you’re prepared.

Pros

• High Returns Potential: Cryptocurrencies like Bitcoin and Ethereum have historically delivered significant gains.

• Decentralization: Operates outside traditional financial institutions, offering autonomy over your money.

• Diversification: Adds a unique asset class to your portfolio.

• Accessibility: Open to anyone with internet access—crypto transcends borders.

Cons

• Volatility: Prices can swing dramatically, which may not suit risk-averse investors.

• Regulatory Risks: Uncertain government regulations can impact the market.

• Security Concerns: Vulnerability to scams, hacks, and phishing attacks.

• Complexity: Requires understanding of wallets, private keys, and blockchain technology.

Before diving into crypto investments, reflect on the following:

• Project Details: Understand what the cryptocurrency does and its potential in the market.

• Risk Tolerance: Crypto is volatile—only invest what you can afford to lose.

• Investment Goals: Ensure crypto aligns with your broader financial plans and life goals.

• Start Small: Begin with modest investments to learn the ropes.

Options for Indirect Crypto Investment

If managing cryptocurrencies directly feels overwhelming, consider these alternatives:

• Spot Bitcoin ETFs: Recently approved by the SEC, these allow exposure to Bitcoin without owning it directly.

• Crypto-Related Stocks: Companies like Coinbase, Nvidia, or MicroStrategy provide indirect exposure to the crypto market.

Investing in crypto is an exciting journey, but it’s not without risks. Take the time to educate yourself, start small, and focus on your goals. As you become more comfortable, you’ll discover how crypto can complement your overall investment strategy.

Stay tuned for the next issue, where I’ll discuss more about crypto.

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.