🌳 What to expect this week

and stocks fly

Good morning investors! BTC almost touched $80,000 over the weekend as investors prepare for another bull run.

Today we cover:

  • What to expect this week

  • Stocks hitting new highs

  • Diversification

📊 Economy and News 

What to Expect this Week

Here’s what to keep an eye on this week:

Election Impact on Inflation

Following Trump’s election win, investors await October’s U.S. CPI report on Wednesday for signs of inflationary pressures from his policies, especially tariffs. The Fed’s recent rate cut adds focus on how inflation may shape future rate decisions.

Fed Speeches

Fed officials, starting with Governor Waller on Tuesday, will speak throughout the week. Chair Jerome Powell’s remarks on Thursday will be closely watched for economic signals.

Bitcoin Nears $80,000

Bitcoin is approaching $80,000 on expectations that Trump’s administration will implement crypto-friendly policies, potentially boosting the digital asset market.

Global hits:

Worth checking: US fiscal health risks increase after Trump election, says Moody's

Interesting: The world’s 10 richest people got a record $64 billion richer from Trump’s reelection. Moreover, Trump just made $500 million with a single Truth Social post.

Sponsored by Mode Mobile

🚨Heads up! It's not the publicly traded tech giant you might expect… Meet $MODE, the disruptor turning phones into potential income generators. Investors are buzzing about the company's pre-IPO offering.1

📲Mode saw 32,481% revenue growth from 2019 to 2022, ranking them the #1 overall software company on Deloitte’s most recent fastest-growing companies list2 by aiming to pioneer "Privatized Universal Basic Income" powered by technology—not government. Their flagship product, EarnPhone, has already helped consumers earn & save $325M+.

🫴 Mode’s Pre-IPO offering1 is live at $0.25/share — 20,000+ shareholders already participated in its previous sold-out offering. There’s still time to get in on Mode’s pre-IPO raise and even lock in 100% bonus shares3… but only until their current raise closes for good.

What else we’re snackin’

Apple’s recent $3T valuation has spurred a series of impressive raises among smartphone innovators — and $MODE’s pre-IPO offering1 is no exception. It’s now live at $0.25/share — lock in up to 100% bonus shares3 while the raise lasts.4

📈 Stocks

S&P 500 5,995.54 (+0.38%)
DJIA 43,988.99 (+0.59%)
NASDAQ 19,286.78 (+0.090%)
BRENT CRUDE 73.87 (-2.33%)
* Prices as of Nov 10th 3rd, 12:20 AM UTC

Historic Market Rally: US Stocks Soar to Record Highs Following Trump’s Presidential Victory

The US stock market reached historic levels on Friday, marking its strongest week of the year in the wake of Donald Trump’s recent victory in the presidential election. The S&P 500 climbed, momentarily crossing the 6,000-point threshold for the first time. Similarly, the Dow Jones Industrial Average added 260 points, closing at a record 43,989 after briefly breaking 44,000.

This marked a milestone week for both indexes, achieving their highest weekly gains in over a year. The Nasdaq, led by the tech sector, also saw a slight increase of 0.09% on Friday, having previously topped the 19,000-point mark for the first time earlier in the week. The US dollar strengthened, concluding a week-long rally, while Treasury yields saw a slight dip.

Investors rallied behind the clarity Trump’s victory provided, evaluating his proposed policies, particularly corporate tax rate reductions, and what they might mean for the business landscape. The market’s historic gains were propelled by a dramatic post-election surge on Wednesday, with the Dow surging 1,507 points, marking a single-day gain exceeding 1,000 points—a feat last seen in 2022.

The election results diminished uncertainty, which markets tend to avoid, prompting a renewed rush into US equities. The Federal Reserve’s anticipated quarter-point interest rate cut on Thursday further fueled optimism, providing an additional boost to investor sentiment.

GEO Group, a private prison operator, surged nearly 76%, reaching a level unseen since Trump’s previous term in 2018. Tesla, led by Elon Musk, soared 8.18% on Friday and achieved a week-long gain of 32.27%, pushing its valuation above $1 trillion for the first time since 2022.

Interesting: The U.S. has reportedly ordered TSMC to halt shipments of advanced chips to Chinese customers that are often used in artificial intelligence applications.

Surprising: Volkswagen recalls more than 114,000 cars due to airbag safety. Elsewhere, Block said that it was “winding down” TBD after a stretch of layoffs. Block CEO Jack Dorsey had tweeted in 2021 that his company was starting a crypto unit called TBD with BTC as its main focus.

💵 Personal Finance

Stock Diversification

A very important rule of investing is diversification, i,.e: not to put all your eggs in one basket.

Some investors diversify on a very basic level. For example, they choose different asset classes. Though effective, this might not be the best technique. You need to diversify further.

How?

Let’s talk about stocks.

You can diversify within stock as well.

This is important because it ensures that no single company has too much influence over the value of your holdings.

The average diversified portfolio holds between 20 and 30 stocks. We think 25 is a decent number but that's not a rule. It also depends on how much money you’re spending and how aware you are of the market.

Benefits of having a large portfolio: It reduces risks, including company-specific and sector risks. Moreover, it offers protection against large losses, and opportunities for tax-loss harvesting.

Disadvantages of having a large portfolio: A large portfolio can be tricky to manage and also costlier, based on your broker.

Benefits of having a small portfolio: Outliers can have a greater impact on your portfolio, helping you make more money. Plus, fewer stocks are easier to manage.

Disadvantages of having a small portfolio: There is a higher risk of losses, especially if one stock ends up moving in the opposite direction.

An easy solution: A great way to stay diversified and avoid these issues is to invest in an ETF you trust. You can easily find industry-specific stocks and some with greater diversification with dozens of stocks in their portfolios.

Check this video for more on ETFs:

💰 Be a Better Investor

"It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for."

Robert Kiyosaki

Resources:

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.


Advertiser’s Disclosures

1 Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.

2 The rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.

3 A minimum investment of $1,950 is required to receive bonus shares. 100% bonus shares are offered on investments of $9,950+.

4 Please read the offering circular and related risks at invest.modemobile.com. This is a paid advertisement for Mode Mobile’s Regulation A+ Offering.

Past performance is no guarantee of future results. Start-up investments are speculative and involve a high degree of risk. Those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investment tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. Further, investors may receive illiquid and/or restricted stock that may be subject to holding period requirements and/or liquidity concerns.