JPow goes hawkish

*past 24-hour performance

💨 TL;DR

  1. Moody's Ratings Outlook: Moody's changed the US ratings outlook to negative while affirming the AAA rating.

  2. Wall Street's Surge: Wall Street rose sharply Friday, keeping November on track to be one of its best months of the year, as companies continued to turn in better profits for the summer than expected.

  3. Treasury Volatility: Investors remained wary of lingering Treasury volatility even as US stocks rallied.

  4. Potential Fall in Stocks: Stocks are poised to fall this week, influenced by the looming release of the latest consumer price index data and the race on Capitol Hill to pass a temporary government funding bill​.

  5. End of Low-Wage Pay Surge: The surge in low-wage pay is over, potentially threatening the consumer boom.

  6. Return of FOMO and Market Rally: Investors showed renewed interest in stocks, with FOMO driving sentiments and expectations of a year-end rally in the markets.

📰 Market Headlines

  • In a Bad Mood: The last rating agency to do so, Moody’s changed its outlook for the U.S. from stable to negative on Friday, as Congress faces another government shutdown.

  • Big Numbers Dropping: The Consumer Price Index (CPI) and Producer Price Index (PPI) report this week, as will major retailers Walmart and Target.

  • Steady on: The Federal Reserve says banks in 2023 are steadier than their 2008 counterparts. It’s an admittedly low bar.

  • Rock on: Scientists may have found $37 billion worth of rare earth elements tucked away in a sleepy Wyoming mine.

  • What’s the Opposite of Progress? House Speaker Mike Johnson’s funding plan doomed by GOP lawmakers ‘hell-bent’ on shutdown.

  • In the Red: Morgan Stanley forecasts the S&P 500 will end 2024 at 4,500, up 1.9% from Friday’s close and probably in the red with inflation.

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🧠 What do you think?

Will the US Government shut down this week?

Deadline is 17th November

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🕶️ Market Vibes

😱 Fear and Greed Index

🎤 What you said

While prediction markets think there’s only a 9% chance of further hikes, and CME traders put the likelihood at 24%, you guys say it’s 50/50.

Comment of the day:

“Economic growth will slow sharply over the next few quarters due in part to the lag effect of higher interest rates imposed earlier, as well as the depletion of savings and resistance to higher prices. This drop in consumer spending will cause layoffs, easing labor cost pressure, and some price cuts, bringing the PCE down by 1%. By late winter, the talk will be about when the Fed will cut rates and the stock markets will soar. ”

Can magnetic fields treat infections? 🧲

You probably know that metallic implants are common. (Think pacemakers, hip & knee replacements, etc)

But you may not realize that up to 3% of orthopedic implants become infected, and these infections can have serious consequences. Treating them usually entails more costly, invasive surgeries.

​Solenic Medical​ uses high-frequency magnetic fields to treat metallic implant infections. They aim to eliminate bacterial infections without surgery.

  • Typically, post-operation infections are challenging to treat, because bacteria can form biofilms on the surface of the implant

  • These biofilms are resistant to antibiotics.

  • Instead, ​Solenic heats up the metal implant​ using an alternating magnetic field. The heat generated is sufficient to destroy the biofilm without damaging surrounding tissue.

Treating an infected implant involves multiple surgeries. It's a lengthy, expensive, and painful process. ​Solenic's method​, if proven effective and safe, would be a much better option.

If proven effective and safe, this would represent a significant advancement in the treatment of such infections —potentially reducing the need for additional surgeries and the associated healthcare costs and improving patient outcomes.

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📊 Stocks

Brought to you by our friends at Public.com, my favorite online broker.

  • In Rude Health: Hologic jumped 7.3% for the biggest gain in the S&P 500 after the maker of diagnostics and other products focused on women’s health reported better profit for the latest quarter than expected.

  • A Low Bar: Walmart and JPMorgan are losing the battle against startups.

  • Not so Marvellous: The Marvels, Disney’s latest film in the Marcel Cinematic Universe (MCU) tanked over the weekend.

  • Fill ‘er Up: Berkshire Hathaway loaded up on $246 million worth of Occidental Petroleum shares in October.

Seven Nasdaq 100 companies have made up the vast majority of the index’s gains this year. Public lets you invest in all of them at once with their Magnificent Seven plan.

📊 And Income

Brought to you by our friends at Public.com, my favorite online broker.

  • Is there a private credit bubble? FT’s Alphaville paints a compelling picture that private credit and private debt are overheated.

  • Stock Up? Chevron's 4.2% dividend yield and low 10x P/E multiple make it cheap.

If you want to invest in US stocks from companies that pay high dividends but don’t want to do the research yourself, check out Public’s High-Income Dividend-Paying plan. It follows the top 20 holdings by weight from the iShares Core High Dividend ETF (HDV).

🌎 Global Perspectives

🇦🇺 Australia's Inflation Ebb: Inflation pressures across Australia's economy are now expected to ease more gradually than thought just three months ago.

🇨🇳 China's Economic Influence: China's economic influence in the Middle East is slowing.

🇮🇷 Iran and Saudi Summit: Iran's president joined dozens of Arab and Muslim leaders at a summit in Saudi Arabia. This is the first such visit to the kingdom in more than 15 years as the Islamic world sought to project unified opposition to Israel's military operations in Gaza.

💎 Wealth Watch

How to profit from (legal) company insider trades.

A 5-step guide to processing ambiguous news in the markets and the economy.

Gold is near an all-time high. Here’s how to sell without getting scammed.

🗳️ Outside the Box

📈 Trends you need to know

Brought to you by our friends at Glimpse, my favorite way to spot trends.

Nuclear hydrogen involves using the heat and electricity generated by nuclear reactors to extract hydrogen from water or other compounds. It's a low-carbon method promising for clean energy, as it doesn't rely on fossil fuels like traditional hydrogen production.

That’s all for today. Did we miss anything? Smash reply to let us know.

Cheers,

Wyatt

Notes

Please read this disclaimer. The authors of Alt Assets, Inc. are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content should not be taken as professional advice. They are self-taught accredited investors, sharing information, research, entertainment and lessons learned based solely on their own experience and circumstances. Individual results may vary. The published content is unique, based on certain assumptions and market conditions at the time of publishing, and is intended to serve solely as research, not financial advice. For entertainment purposes only. Not investment advice. Alts I LLC (the “Fund”) is an affiliate of Alt Assets, Inc. and the Fund has conducted a private placement offering under Rule 506(c) of Regulation D of the Securities Act of 1933, as amended. The Fund may invest in one, several, or all of the alternative asset classes that Alt Assets, Inc. publishes content about on its site. Any of the Fund’s investments that have positive designations on the Alt Assets, Inc. site are purely coincidental, as the Fund is actively managed and guided by its own investment parameters, as summarized in the relevant private placement memorandum. Alternative investing involves a high degree of risk, including complete loss of principal and is not suitable for all investors. Past performance does not guarantee future results. The newsletter may contain affiliate links, meaning that Alts.co and its associated entities may receive compensation for referring customers to the noted companies. We recommend seeking the advice of a financial professional before you make any investment in an alternative asset class or any associated entities, and we accept no liability whatsoever for any loss or damage you may incur.

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