“Splish! Splash!”

Hi There! As the Paris 2024 Paralympics comes to an end, I want to express how incredibly proud I am of our two para-athletes representing Grenada.

A huge congratulations to Ishona Charles, who achieved personal bests in both Women’s shot put and javelin, and to Tyler Smith, who also set a personal best in the Men’s Shot Put.

These achievements, along with their role as our flag bearers in the historic opening ceremony, have filled my heart with pride. Special thanks to their coach, Bassanio Nicholas, for his unwavering support.

Ishona and Tyler, you’ve made all of Grenada proud. Big up yourselves!

Alright, let’s dig in!

Last Week (September 1 - 7, 2024) Recap

Last week was a shortened trading week due to the Labour Day holiday, but it wasn’t short on market action. U.S. stocks kicked off September on a down note, led by declines in the technology sector as some AI-driven trades unwound. International equities mirrored this weakness, while the bond market saw gains as U.S. Treasury yields fell on soft jobs data. Notably, the 2-year Treasury yield fell below the 10-year for the first time since July 2022, fully reversing the yield curve inversion.

U.S. Markets

U.S. stocks struggled during the first week of September, living up to the month’s reputation for being tough on markets. The Dow fell 2.93% and the S&P 500 dropped 4.25% for the week. The decline was driven by weak economic data and concerns about the potential for a soft landing in the economy. Tech stocks, particularly semiconductors, led the downturn, with the Nasdaq dropping 5.75% following a disappointing outlook from Broadcom (AVGO). Energy stocks also underperformed as crude oil prices fell sharply.

• Fixed Income: The Bloomberg Aggregate Bond Index gained as U.S. Treasury yields fell across the board, especially after Friday’s weaker-than-expected jobs report. The 2-year Treasury yield dropped below the 10-year, fully reversing the yield curve inversion. Markets are now pricing in significant rate cuts over the next year, with over 1.0% of cuts expected this year alone.

• Commodities: Commodity markets were mixed, with energy markets dragging down the broader index. WTI crude oil tumbled 8% despite OPEC+ pausing a planned output hike. In contrast, metals, particularly gold, saw gains as the dollar weakened and Treasury yields fell. Gold ended the week up 3.4%, while silver and copper also edged higher.

Currencies:

Currency volatility increased, with the yen strengthening against the dollar following hawkish comments from Bank of Japan officials. The dollar ended the week down 0.4% against a basket of major currencies, as rising rate-cut expectations in the U.S. weighed on the greenback. 

U.S. Economic Recap (September 1 - 7, 2024)

• August Employment Data: The job market is showing signs of cooling, with the pace of hiring slowing and the number of people working part-time for economic reasons increasing. The August jobs report slightly missed expectations, adding to concerns about economic slowdown. Markets are anticipating a more aggressive rate cut by the Federal Reserve at its upcoming meeting, although a 25 basis point cut is more likely.

Global Markets Recap

Global markets mirrored U.S. declines, with major indexes in Europe and Asia posting significant losses. Weak economic data from Germany and hawkish comments from the Bank of Japan contributed to the sell-off. The STOXX Europe 600 Index fell over 3%, Japan’s Nikkei 225 dropped nearly 6%, and the Shanghai Composite fell 2.7%.

Crypto Recap (September 1 - 7, 2024)

• Bitcoin Decline: Bitcoin dropped sharply alongside global equities, hitting lows slightly below $53,000. The broader crypto market also suffered, with Ethereum down 9% and other major cryptocurrencies seeing similar declines. The sell-off was exacerbated by concerns over rising interest rates and a potential unwind of yen carry trades.

• Cardano’s Successful Hard Fork: The Cardano blockchain successfully implemented its Chang hard fork, marking a shift toward decentralized governance. This upgrade allows any Cardano (ADA) token holder to participate in governance actions and introduces new roles for stake pool operators.

Here are other key highlights from last week:

• PayPal’s stablecoin PYUSD nears $1 Billion Market Cap.

• SuiPlay0x1 crypto gaming handheld price, specs revealed for 2025.

• Magic Eden dominates NFT trading volume.

• MATIC to POL Migration is now live.

All eyes on inflation data this week!

This week’s key U.S. Events:

• U.S. Economic Data:

  • CPI Inflation (Wednesday)

  • PPI Inflation (Thursday)

  • Jobless Claims (Thursday)

  • Consumer Sentiment (Friday)

No Fed Speakers This Week: The Fed has entered its pre-FOMC meeting blackout period ahead of the September 18 interest rate decision.

Earnings Releases:

Key earnings reports expected to influence market sentiment this week are shown below.

Global Economic Events This Week:

• Tuesday:

  • UK Claimant Count Change

  • UK Average Earnings Index

  • China New Loan

  • Bank of Canada (BoC) Gov Macklem Speaks

• Wednesday: 

  • UK GDP

• Thursday:

  • European Central Bank (ECB) Interest Rate Decision

  • ECB Press Conference

  • China Industrial Production and Retail Sales

Trading Tip:

Moving averages don’t tell the whole story; they simply act as a useful tool to guide your trading decisions!

Week 9/01/24 - 9/07/24 Recap

Special Tools and Strategies - Whitepaper

What is a Cryptocurrency Whitepaper? 

A cryptocurrency whitepaper is a detailed document that outlines the fundamentals of a crypto project. It introduces the project’s goals, architecture, implementation plans, and value propositions. Whitepapers are essential for understanding the technical aspects and potential of a crypto project.

Why Are Whitepapers Important? Whitepapers are critical for educating investors, providing transparent information, and identifying potential red flags. They serve as a key resource for making informed investment decisions.

Standard Components of a Whitepaper

1. Abstract: Overview of the project and its goals.

2. Introduction: Background information and the problem the project aims to solve.

3. Technical Details: Detailed descriptions of the technology and protocol.

4. Tokenomics: Explanation of token use, distribution, and value.

5. Business Model & Use Cases: How the project plans to create value and potential applications.

6. Roadmap & Milestones: Key activities and timelines.

7. Team & Advisors: Information about the project team’s experience.

8. Conclusion: Summary and call to action.

How to Read and Understand a Crypto Whitepaper

1. Get to Know the Project: Start by understanding the project’s purpose, goals, and market opportunity.

2. Examine the Team: Assess the experience and credibility of the project’s team.

3. Understand Tokenomics: Evaluate how tokens will be used and valued within the project.

4. Look at the Roadmap: Ensure the project’s milestones are realistic and achievable.

Major Red Flags to Avoid

1. No Utility: Be wary of projects without a clear, practical application.

2. Unfocused Team: A lack of clear direction or experience in the team is a red flag.

3. Poor Grammar: Sloppy or unclear language indicates a lack of professionalism.

4. Exaggerated Promises: Beware of unrealistic claims about returns or technology.

5. No Whitepaper: A missing or incomplete whitepaper is a major warning sign.

   

   Solana (SOL) Whitepaper, page 1

Understanding and evaluating a cryptocurrency whitepaper is key for any serious investor. By following this guide, you’ll be better equipped to navigate the crypto space and make informed investment decisions. Always be on the lookout for clarity, credibility, and any potential red flags before investing in a new project.

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.