“Workin’ 9 to 5!”

Hi There! This year has brought a wave of milestones, but one that truly stands out is my 10-year "gymversary" at CrossFit Maryland Heights. It’s been a full decade of workouts, growth, and grit, all under the guidance of my coach, Chris Glover. Reflecting on these ten years fills me with immense gratitude for the journey we’ve shared—a journey marked by sweat, setbacks, and breakthroughs.

Coach Chris has been a steady presence through it all. He’s helped me manage my food allergies, crafted rehab programs after my back injury, and nudged me forward on days when life felt heavy. He’s watched me grow not only as a powerlifter but also as a coach, supporting me through Missouri and Illinois State Powerlifting Meets alongside our incredible team. What a journey it’s been!

This decade has taught me lessons beyond fitness—discipline, adaptability, and the importance of perseverance. It reminds me that, much like in powerlifting, life itself demands strength, patience, and the ability to bounce back. As I celebrate this milestone, I hope it inspires you to keep pushing toward your own goals, even when the going gets tough.

Cheers to growth, one rep—and one step—at a time!

Alright, let’s dig in!

Last Week’s Market Overview (October 20 - 26, 2024)

Last week, U.S. markets faced mixed outcomes as corporate earnings and Treasury yields took center stage. The S&P 500 snapped its six-week winning streak, declining alongside the Dow, while the Nasdaq posted a modest gain. Earnings season accelerated, bringing major corporate results from companies like Tesla, UPS, and General Motors, while surging Treasury yields pressured equities. The approach of the U.S. election continued to add uncertainty to commodities and currency markets, contributing to a pullback in gold from recent highs.

U.S. Markets Recap

After a six-week rally, the S&P 500 declined by 0.96% last week, and the Dow dropped over 2.68%, while the Nasdaq held steady with a slight 0.16% gain. A rotation into growth stocks, boosted by earnings from Tesla (+22%), helped the tech-heavy Nasdaq, while small caps lagged (-2.99%).

• Earnings Highlights: Tesla kicked off the tech-heavy "Magnificent Seven" reports with strong earnings, propelling its stock. UPS beat profit expectations, while General Motors impressed with its first profit growth in two years. In contrast, Boeing and Coca-Cola underperformed, and McDonald’s saw a decline tied to an E. coli outbreak linked to its burgers.

• Corporate Movements: Capri Holdings fell sharply after a judge blocked its merger with Tapestry, while Starbucks stock slid as the company suspended 2025 guidance, and Arm Holdings withdrew a chip design license from Qualcomm.

• Fixed Income: Treasury yields rose sharply, with the two-year and ten-year yields each gaining 13 basis points, primarily due to robust economic data that scaled back expectations for Fed rate cuts. An increase in the Treasury term premium added to yield gains as investors demanded greater compensation for holding longer-term bonds. Investment-grade and high-yield corporate credit spreads remain tight, making credit markets relatively expensive despite strong fundamentals.

• Commodities: The Bloomberg Commodities Index ended higher, led by a 3.5% gain in oil as Middle East tensions and election-driven volatility kept prices on edge. Gold inched up 0.7%, though it saw some profit-taking after hitting record highs, while silver and copper posted slight losses as investors weighed global demand concerns and Chinese economic stimulus measures.

Currencies:

The dollar gained strength against its peers as global central banks signaled a slower pace of rate cuts, while the yen weakened ahead of Japan’s upcoming general election. The euro softened following mixed economic data in the Eurozone, particularly weak PMI results from France.

U.S. Economic Recap (October 20 - 26, 2024)

A relatively quiet week for economic data still yielded a few highlights:

• October PMIs: Both manufacturing and services PMIs beat expectations, with the composite PMI hitting 54.8, pointing to a resilient economy.

• Jobless Claims: Initial claims fell to 227,000 as the impact of Hurricane Helene waned, though continuing claims rose, signaling a slowly cooling labour market.

• New Home Sales: Sales rose to 738,000 in September, but revisions showed lower activity over the prior three months.

• Consumer Sentiment: The University of Michigan’s report saw one-year inflation expectations ease to 2.7%, and consumer sentiment improved despite concerns around housing.

Global Markets Recap

• Europe: European markets were mixed, with the STOXX 600 down over 1% amid growth concerns in France and Germany. PMI data showed a decline in France, while Germany managed to beat expectations. Earnings reports were also varied, with SAP, Logitech, and Maersk outperforming, while Mercedes-Benz and L’Oreal disappointed due to weak Chinese demand.

• Asia: Asian markets mostly declined amid muted catalysts. In China, banks cut prime loan rates by 0.25%, though stimulus measures failed to lift market sentiment significantly. Japanese markets were down over 2.5% as dovish central bank comments and election uncertainties weighed on investor confidence. Taiwan and South Korea also saw declines, while mainland Chinese stocks closed with a gain. 

Crypto Recap (October 20 - 26, 2024)

• Bitcoin and Ethereum: Bitcoin edged up 0.43%, while Ethereum fell 3.62%, as the crypto market saw moderate fluctuations.

• Stripe Acquires Stablecoin Platform Bridge: In a $1.1 billion deal, payments giant Stripe announced its acquisition of Bridge, signaling a deeper commitment to building stablecoin infrastructure.

• Crypto Investment Surge: U.S.-based crypto investment inflows hit $2.2 billion last week, driven by election optimism, while Canada and Sweden saw outflows attributed to profit-taking.

• Top Crypto Gainers: GOAT (+173%), Raydium (RAY), and Helium (HNT)

Here are other key highlights from last week:

• Aptos Foundation partnered with crypto-AI startup.

• Visa and PayPal execs push for stablecoin adoption to streamline global payments.

• Independence Day director creating TV series based on Web3 game.

• Decentraland launched revamped virtual world.

• Polymarket is a success for Polygon Blockchain.

This week is a busy for the Markets!

Key U.S. Economic Releases This Week:

• Tuesday: Consumer Confidence, JOLTS Job Openings

• Wednesday: Q3 GDP, ADP Nonfarm Payrolls, Pending Home Sales

• Thursday: Jobless Claims, Core PCE Inflation, Employment Cost Index, Chicago PMI

• Friday: Nonfarm Payrolls, Unemployment Rate, Average Hourly Earnings, ISM Manufacturing PMI

Events to Watch:

• U.S. Election: With a week remaining, election uncertainties are likely to keep volatility elevated across asset classes.

• Fed Blackout Period: No Fed speakers scheduled this week, as the central bank enters its pre-meeting blackout ahead of the Nov. 6-7 policy decision.

Earnings:

This week features key reports from "Magnificent Seven" members, including Alphabet, Microsoft, Meta, Apple, and Amazon. Investors will closely watch these results for guidance on the tech sector's outlook. AMD’s earnings will also be a focal point in the semiconductor space.

Global Economic Events This Week:

• Monday: Japan General Election, BoC Gov Macklem Speech

• Tuesday: U.K. Monetary Policy Report Hearings, Australia CPI

• Wednesday: Germany CPI, Australia Retail Sales, China Manufacturing PMI, BoJ Interest Rate Decision

• Thursday: Euro Area CPI, Canada GDP

• Friday: Switzerland CPI

Trading Tip: Worse six months of the year ends with October!

Week 10/20/24 - 10/26/24 Recap

Special Tools and Strategies

Opening a Brokerage Account is Easy as 1-2-3

Opening a brokerage account is a significant step toward growing your wealth, and it's simpler than you might think. If you've read Issues 102 and 103, you now understand the type of investor you are, your financial goals, and the purpose of a brokerage account. Armed with this knowledge, you’re ready to open an account to start your investment journey!

Requirements for Opening an Online Brokerage Account

To get started, you’ll need:

• Personal Information: Your full name, address, Social Security number, and employment details.

• Financial Information: Details about your income, net worth, and investment experience (to help the broker recommend suitable products).

• Banking Info: For funding the account, you’ll need bank account details to transfer funds or set up deposits.

Steps to Open an Online Brokerage Account

1. Choose Your Broker

   Research and select a brokerage firm that aligns with your investment goals and preferences. Look for low fees, available investment options, and quality customer service.

2. Fill Out the Application

   Online applications are straightforward and usually take about 10-15 minutes. You’ll provide your personal and financial information, and choose your account type (individual, joint, or retirement).

3. Fund Your Account

   Once your application is approved, you’ll need to add funds to start investing. Most brokerages allow transfers from your bank account, with some requiring a minimum deposit.

4. Select Investments

   Begin exploring stocks, ETFs, mutual funds, or other assets that align with your risk tolerance and investment strategy. Most brokers offer tools, resources, and educational materials to help you make informed choices.

5. Review and Manage Your Account

   Regularly monitor your investments, rebalance as needed, and adjust your strategy over time. Many brokers provide tools to track performance and make changes as you go.

As you set up your brokerage account, remember that your choice of investments should align with your investor type, risk tolerance, and financial goals. Opening a brokerage account is just the beginning—your journey will involve regular learning, monitoring, and adjusting. Take this step with confidence, knowing that you’re building a foundation for your financial future.

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.