“Started From the Bottom!”

Hi There! I have this little habit I’ve developed over the years, asking myself thought-provoking questions to keep my mind and soul in check. It’s a way to stay grounded, positive, and focused. As I continue to reflect and prepare for 2025, I realized this exercise is too good to keep to myself. So today, I’m sharing it with you, hoping it can help set the tone for your New Year.

Here are the 10 hard questions I’ve challenged myself with as I prepare for the coming year. These aren’t the kind of questions you answer lightly. They require you to dig deep, pause, and reflect on the bigger picture.

1. Which tasks can I delegate or automate to focus more on what truly matters?

2. How will I measure success beyond money or job titles?

3. What truths about myself must I face to grow and improve?

4. What activities drain my time and energy, and how can I eliminate them?

5. What steps will I take to prioritize my physical and mental health?

6. What am I telling myself that isn’t entirely true?

7. How much am I letting my ego get in the way, and what is it costing me?

8. What new skill do I need to learn to stay ahead and relevant?

9. Am I guiding and inspiring others, or am I simply trying to maintain control?

10. What significant reality am I avoiding, and how is it holding me back?

These questions aren’t always comfortable to answer, but they’re necessary. As I worked through them, I felt that mix of vulnerability and clarity. The kind that comes when you’re being honest with yourself. It’s a reminder that growth doesn’t come without a little discomfort, and the best kind of progress happens when we’re willing to ask the hard stuff.

I’d love for you to try this exercise too. Take a quiet moment, grab a notebook, and see where your answers take you. You might surprise yourself with what transpires and how it shifts your mindset for the year ahead.

Here’s to asking the tough questions and stepping into 2025 with intention and clarity.

Alright, let’s dig in!

Last Week’s Market Overview (December 01 - December 07, 2024)

Stocks surged last Friday as a solid November jobs report lifted market sentiment. The S&P 500 capped its best month of 2024 with gains for the week, advancing 0.8%, while the Nasdaq soared 3.2%. The Dow was the laggard, slipping 0.6%, weighed by healthcare and financials. Technology and consumer discretionary sectors led the rally, supported by renewed enthusiasm for AI. Meanwhile, global markets navigated political turbulence, U.S. Treasuries ended flat, and oil prices dipped after OPEC+ meetings.

U.S. Markets Recap

Equities: Markets rode the AI wave as Salesforce (CRM) and Marvell Technology (MRVL) delivered upbeat results driven by AI growth. Nvidia (NVDA) continued to dominate headlines with strong performance. However, the rally broadened slightly midweek before Friday's payrolls report provided a boost. Growth stocks outperformed value, while small caps declined 1.4%.

Fixed Income: Treasury yields traded mixed, with the 10-year yield closing two basis points lower and the two-year yield shedding six basis points. A flatter yield curve highlighted investor concerns about the Fed’s rate-cutting path and longer-term economic impacts. Markets anticipate a return to an upward-sloping curve next year, though timing remains uncertain.

Commodities: The Bloomberg Commodities Index slipped 0.6%. Crude oil fell 1.3%, reacting to OPEC+ decisions to extend production cuts for 18 months. Gold dipped slightly as Friday’s payroll report increased market optimism, while silver and copper posted weekly gains.

Currencies:

The U.S. dollar strengthened modestly, buoyed by better-than-expected economic data and rising consumer confidence. The euro and yen weakened as market participants weighed softer macro data in Europe and Asia.

U.S. Economic Recap (December 01 - December 07, 2024)

• November payrolls rebounded with 227,000 jobs added, while unemployment rose to 4.2%. The three-month average payroll growth of 173,000 suggests a “goldilocks” labour market, with steady growth that supports consumer spending. Leisure and hospitality led hiring, while average hourly earnings rose 4% year-over-year, outpacing inflation.

• Labour Market Loosening. Job openings dropped closer to pre-pandemic levels, and quit rates declined, indicating a cooling labour market. This supports the Fed's dual mandate of stable employment and inflation, bolstering rate-cut expectations ahead of the December 18 meeting.

Global Markets Recap (December 01 - December 07, 2024)

• Europe: European equities posted gains, bolstered by dovish European Central Bank (ECB) commentary and political developments. French stocks rallied after Prime Minister Barnier’s government collapsed, with markets hopeful for more favourable policies. Meanwhile, German equities hit record highs despite weaker macro data.

• Asia: Asian markets ended mostly higher, despite political drama in South Korea, where martial law was briefly imposed. Japan gained on hopes of rate hikes following Bank of Japan (BOJ) Governor Ueda’s comments. Taiwan outperformed, supported by strong tech stock rallies, while China advanced despite early-week trade tension headlines.

Crypto Recap (December 01 - December 07, 2024)

• Bitcoin soared to $104,000, breaking psychological and market cap milestones by surpassing $2 trillion. As the seventh-largest global asset, Bitcoin now challenges the market caps of tech giants like Google and Amazon.

• New SEC Chair Sparks Optimism. President-elect Trump nominated Paul Atkins, a pro-crypto advocate, to head the SEC. Atkins’ appointment has been hailed as a win for the crypto industry, with expectations for clearer, less restrictive regulations under his leadership.

• Among Last Week’s Top Crypto Gainers: MOG, CRV, DYDX.

Here are other key highlights from last week:

• Avalanche daily fees surged ahead of Etna upgrade.

• Cardano DeFi TVL near record $700 million, ADA skyrockets 20%.

• NFTs hit $562M in monthly sales volumes, recording six-month high.

• 'Illuvium Beyond' Ethereum game revealed Casio G-Shock Collab.

• Courtyard.io and Polygon Labs ushered in a new era of collecting.

This week is light on high-impact economic events!

Key U.S. Economic Releases This Week:

1. CPI Inflation (Wednesday): A key measure of consumer price trends.

2. PPI Inflation (Thursday): Tracks inflation at the wholesale level.

3. Jobless Claims (Thursday): Weekly indicator of labor market health.

No Fed speakers this week!

No Federal Reserve speakers are scheduled this week due to the pre-FOMC meeting blackout period ahead of the December 17-18 policy decision.

Earnings:

Key reports include Oracle ($ORCL) and C3.AI ($AI) on Monday, GameStop ($GME) on Tuesday, Adobe ($ADBE) on Wednesday, and Broadcom ($AVGO) and Costco ($COST) on Thursday.

Global Economic Events This Week:

• Monday: China New Loans, RBA Interest Rate Decision

• Tuesday: OPEC Meetings

• Wednesday: BoC Interest Rate Decision, Australia Unemployment Rate

• Thursday: SNB Interest Rate Decision, Eurozone Monetary Policy Statement

• Friday: UK GDP

Trading Tip:

“Investors tend to get rid of their losers near year-end for tax purposes!"

Week 12/01/24 - 12/07/24 Recap

Special Tools and Strategies - Crypto Wallets!

How to Store Your Crypto Safely!

Cryptocurrency has revolutionized how we think about money, offering a level of control and freedom that traditional financial systems can’t match. However, with this freedom comes great responsibility. Let’s imagine a friend, John, who was thrilled about his first cryptocurrency purchase. John stored his funds on an exchange without understanding wallet options, only to lose access when the platform was hacked. This scenario is far too common, but it’s avoidable. Secure storage begins with the right wallet and an understanding of how crypto wallet works.

What is a Crypto Wallet?

A crypto wallet is your personal bank for digital assets. It’s not a physical wallet but a tool to store the keys that give you access to your cryptocurrencies. Think of it as a digital vault where only you hold the key.

• Public Key: This is like your account number. You share it to receive funds.

• Private Key: This is your PIN or password. It’s your access key and must remain confidential.

• Seed Phrase: A backup recovery phrase, usually 12-24 words, that lets you regain access if you lose your wallet. Store in a safe place. Do not screenshot, take a picture, or share with anyone. Write it down in the exact order you see it (from left to right).

Crypto wallets enable you to send, receive, and store digital currencies like Bitcoin, Ethereum, and more. They also provide access to decentralized applications (dApps), decentralized finance (DeFi) platforms, and NFT marketplaces.

How Do Crypto Wallets Work?

Behind every wallet are two keys:

1. Public Key: Used to generate wallet addresses and accept funds.

2. Private Key: Authenticates transactions and secures access to your funds.

When you send or receive cryptocurrency, your wallet interacts with the blockchain to update the ledger, ensuring a secure, verified transaction.

• Receiving Funds: Share your public key with the sender.

• Sending Funds: Enter the recipient’s wallet address and confirm the transaction with your private key.

Types of Crypto Wallets

Crypto wallets come in two primary categories: Hot Wallets and Cold Wallets.

1. Hot Wallets

Hot wallets are connected to the internet, making them accessible and convenient for frequent transactions. Examples include:

• Mobile Wallets: Apps like Trust Wallet for on-the-go transactions.

• Desktop Wallets: Software like Exodus or Atomic installed on your computer.

• Web Wallets: Online wallets hosted by exchanges (e.g., Coinbase, Binance, Gemini).

Pros:

• Easy to use and access.

• Suitable for daily transactions.

• Compatible with dApps and DeFi platforms.

Cons:

• More vulnerable to hacks.

• Requires strong security practices.

2. Cold Wallets

Cold wallets are offline and prioritize security over convenience. They’re ideal for long-term storage of significant investments.

• Hardware Wallets: Physical devices like Ledger or Trezor that store private keys offline. Do not buy these from third parties.

• Paper Wallets: Printed records of your private and public keys.

Pros:

• Immune to online hacking.

• Best for long-term security.

Cons:

• Less convenient for frequent transactions.

• Risk of physical damage or loss.

Finding the Right Balance: Hot + Cold Wallets

Many crypto investors use a combination of hot and cold wallets:

• Hot Wallets: For small, frequent transactions.

• Cold Wallets: For long-term storage and large investments.

Example: Store $1,000 in Bitcoin on a mobile wallet for daily use while keeping $10,000 in a hardware wallet for secure storage.

Key Statistics on Crypto Wallet Usage

1. 70% of crypto users prefer hot wallets for daily transactions due to their convenience. (Source: Crypto.com, 2023)

2. Cold wallets account for over 50% of Bitcoin storage globally, emphasizing their security benefits. (Source: Glassnode, 2024)

3. Over 20 million users now rely on hardware wallets like Ledger and Trezor. (Source: Ledger, 2023)

How to Choose the Right Wallet

When selecting a wallet, consider:

1. Security Features: Does it offer two-factor authentication or backup options?

2. Ease of Use: Is the interface user-friendly for beginners?

3. Compatibility: Does it support the cryptocurrencies you own?

4. Cost: Are there fees for transactions or wallet maintenance?

Practical Tips for Wallet Security

1. Use Strong Passwords: Combine upper and lower case letters, numbers, and symbols.

2. Enable Two-Factor Authentication (2FA): Adds an extra layer of security.

3. Keep Your Seed Phrase Safe: Write it down and store it in a secure location.

4. Avoid Public Wi-Fi: Use private, secure networks when accessing your wallet.

5. Test with Small Transactions: Before transferring large amounts, send a test amount.

Remember, your wallet is your responsibility. Protect it wisely!

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.