"It's a Showdown!"

Hi There! Reflecting on the beauty of growth, I've embraced the transformative power of learning, evolving, and shedding habits that no longer serve me. One significant change I've made is learning to set boundaries. Previously, I believed that always saying yes and overextending myself to please others was beneficial. However, I discovered that giving from an empty cup only led to burnout and resentment, which stifled my personal growth.

I now understand that setting boundaries isn't selfish; it's necessary for respecting my own needs and energy levels. Establishing these limits has been liberating and has fostered significant personal growth. It has improved my relationships and productivity, reminding me that in my pursuit of success, maintaining harmony through self-care and self-respect is essential.

Alright, let’s dig in!

Last week, the stock market was influenced by several key factors:

• Inflation News: Stocks traded lower amid concerns that persistent inflation might delay expected interest rate cuts, affecting corporate earnings and stock valuations.

• Bank Earnings: Disappointing earnings from major banks led to a downturn in stock prices, undoing earlier gains driven by tech companies' AI advancements.

Commodities and Tech Sector Highlights:

• Oil Prices: Geopolitical tensions in the Middle East pushed oil prices to six-month highs, with West Texas Intermediate reaching $87.30 per barrel and Brent crude hitting $92.11 per barrel.

• AMD: Shares fell by 4% after China intensified efforts to remove American chips from its systems, escalating tech tensions between the U.S. and China.

Crypto Market Updates:

• Uniswap Labs SEC Notice: Facing potential legal action from the SEC, Uniswap Labs remains confident in the legality of its products.

• Bitcoin Drops: Bitcoin fell over 8% to $61,918 amid escalating Middle East conflicts, adding to market uncertainty.

 Here are other key highlights from last week:

• Bitcoin Runes meme coin “Dog” will be airdropped to Runestone holders

• MetaMask now lets users check if they are eligible for airdrops

• Move-to-earn protocol StepN announces $30M airdrop for users

• Polygon Labs awarded ISO 27001 Certification

It's tax week, and it is packed with key economic data and significant events:

U.S. Economic Data and Market Events:

• U.S. Retail Sales for March (Monday): Surprisingly strong, indicating that consumer spending remains robust despite higher interest rates. This could suggest a resilient economy.

• NY Fed Manufacturing Index (Monday): Also showed a rise, pointing to strength in the manufacturing sector.

• Fed’s Beige Book (Wednesday): Provided insights into various economic conditions. You can access the Beige Book online for details. If you're unfamiliar with the Beige Book, check out Issue #24 for an easy-to-understand breakdown.

• Initial Jobless Claims, Philly Fed Manufacturing Survey, Existing Home Sales (Thursday): These reports will provide further insights into the labor market, manufacturing health, and the real estate market, respectively.

Federal Reserve Communications:

• Fed Speakers: This week features several speeches from Fed members, including Williams, Daly, Barkin, Jefferson, Mester, Bowman, Bostic, and Fed Chair Powell. Key points include:

  • Fed Vice Chair Jefferson noted on Tuesday that interest rates might remain high for a longer period.

  • Fed Chair Powell’s speech on Tuesday was significant. He indicated that inflation hasn't progressed as hoped and might take longer to return to the 2% target. Powell's remarks led to a rise in the U.S. dollar and bond yields, while stocks fell.

Crypto Market:

• Token2049 Event in Dubai (April 18-19): A major gathering expected to draw significant attention in the crypto world, with influential speakers from various major crypto projects like Polygon, Solana, Pendle, Render Network, Pudgy Penguins, Mantra, Berachain and more.

• Bitcoin Halving is just about two days away, expected around April 19th. This event cuts the reward for mining Bitcoin transactions in half, potentially impacting Bitcoin's price and mining activity. Learn more about Bitcoin Halving in Issue #64.

Earnings Reports:

• Q1 2024 Earnings Season: Begins this week, a crucial period for gauging corporate health amid ongoing inflation concerns.

  • Early reports from Goldman Sachs (GS), Bank of America (BAC), Morgan Stanley (MS), Johnson & Johnson (JNJ), and UnitedHealth (UNH) have been strong.

  • Upcoming reports include Netflix (NFLX) on Thursday, and American Express (AXP) and The Procter & Gamble (PG) on Friday.

The most anticipated earnings releases this week are outlined in the chart below.

Key Global Economic Events:

• China’s Economic Performance:

  • Reports from Monday showed an increase in Q1 GDP, retail sales, industrial output, and a drop in the unemployment rate, indicating strong economic momentum in China.

• Other Global Indicators:

  • Canada, the UK, and New Zealand reported on inflation and unemployment rates, with Canada showing lower-than-expected CPI and the UK experiencing a higher CPI, suggesting varying inflationary pressures.

Trading Tip: Patience pays off —stay the course to reap market rewards!

Week 4/07/24 - 4/13/24 Recap

Special Tools and Strategies

Curious about stock investing but not sure where to start?

Begin with understanding the concept of Fundamental Analysis. So, what exactly is it?

Fundamental Analysis delves into a company's financial statements to assess its potential as an investment. This process involves examining revenues, balance sheets, profit margins, and more to evaluate both the numerical (quantitative) and non-numerical (qualitative) aspects of a company.

These assessments provide a clear picture of the company's assets, liabilities, and shareholder equity, giving you insight into its financial health. Furthermore, fundamental analysis can answer key questions about the company's condition:

• Are sales at the company on the rise?

• Is the company generating profits?

• What are the future prospects for the company?

• How could economic fluctuations impact the company's growth?

Fundamental Analysis is a very important part of intelligent, long-term investment strategies used by financial experts on Wall Street. Understanding a company's fundamental drivers enables you to navigate long-term market trends and make well-informed investment decisions.

So, how can you use Fundamental Analysis to select stocks?

Focus on these five essential financial ratios before investing:

1. P/E Ratio (Price-to-Earnings): Shows how much you need to invest to earn one dollar of the company's earnings. Generally, lower ratios indicate a more attractive investment.

2. ROE (Return on Equity): Measures profitability from shareholders' equity. A higher percentage over time usually indicates a good investment.

3. P/B Ratio (Price-to-Book): Compares the market's valuation of the company to its book value, useful for evaluating a stock's growth potential. There are three bullish scenarios based on the P/B ratio:

   • If the ratio is above 10, the stock is expected to double in value.

   • If the ratio is above 15, the stock is expected to triple in value.

   • If the ratio is above 20, the stock is expected to quadruple in value.

4. Debt-to-Equity Ratio: Indicates how much company financing comes from debt. Ratios below 1 are preferable, suggesting lower risk.

5. Profit Margins: Reflect how much profit a company generates from its sales, with higher margins typically indicating a healthier company.

Use tools like AI or stock screeners (e.g. FinViz discussed in Issue #30) to quickly find stocks with solid fundamentals. Incorporate these evaluations into your broader investment strategy, whether in stocks, futures, or cryptocurrencies.

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.