S&P SHINES BRIGHT! 🌟

1. Genevieve’s Corner

THE S&P SHINES BRIGHT

Hello everyone! 👋

What an amazing November for the S&P, up +8.9%! 📈 It's one of the best November gains in a century! 🤯

The S&P is now less than 5% away from its all-time high of 4,796 on Jan 3rd, 2022.

The Santa Claus rally is in full force! 🎅🏻

Let's recap the week.👇

THIS WEEK’S MARKET RECAP:

• S&P 500 had one of best November performances in 100 years, up +8.9%

• Legendary investor Charlie Munger dies at 99. RIP to an investing GOAT

• Canada’s economy shrank 1.1% in Q3

• Tesla begins Cybertruck deliveries (first new model in 4 years) starting at $60,990

• U.S ISM manufacturing index shrank for a 13th straight month in November (worst stretch in 2 decades)

• Elon Musk claims advertisers are trying to ‘blackmail’ him, says “Go f*ck yourself”

• U.S Q3 GDP grew +5.2%, more than the prior estimate (+4.9%) and the fastest in 2 years

• SEC Spot Bitcoin ETF's potential approval window is between January 5th - 10th, 2024.

• Cyber Week hits record sales (5 days from Thanksgiving to Cyber Monday) of +$38 billion (+7.8% YoY)

• Cathie Wood $ARKK had its best month ever since its founding, up +30% in November

• Billionaire Ken Griffin has said that Miami could overtake New York as a financial hub

• CZ resigns as Chairman of Binance

• The ability of US households to cover an unexpected $2,000 expense is at the lowest level in a decade

• Apple is trying to exit its credit-card partnership with Goldman Sachs

• Sam Altman is officially OpenAI CEO again, and Microsoft gets a “non-voting observer” seat on the board

• Bill Ackman bets FED will cut interest rates as soon as Q1 2024

• MicroStrategy purchases an additional 16,130 Bitcoin ($593MM)

• Risk of a 'hard landing'- where central banks' rate increases cause a steep downturn or recession--has crept up to 23% from 13% back in Sept

• Salesforce beats earnings by $2.11 vs. $2.06 (+51% YoY)

• Millennial credit card delinquency now exceeds pre-pandemic levels

• Several OPEC+ countries agreed to voluntarily cut oil production by 2.2MM barrels per day in Q12024

• Former US Secretary of State Henry Kissinger dead at 100

• Jamie Dimon says the U.S is addicted to debt, and it’s created a dangerous “sugar high” in the economy

• Canadian Banks report BIG loan loss provisions increase YoY: Scotiabank +137%, RBC +89%, and TD +42%

• Shein (fast fashion retailer) filed for an IPO seeking a valuation of +$90 billion (Reddit & Skims talking about IPO)

• The average monthly new mortgage payment is now +52% higher than the average apartment rent, per CBRE. That’s worse than the lead-up to the 2008 housing market crash when the premium peaked at 33%

• Gold hits a record high of $2,075.09 per ounce!

🎯 GENEVIEVE’S TAKE:

This week, we delved into a deep dive into… UPGRADE TO VIP to read GENEVIEVE’S TAKE & portfolio changes this week!

Cheers,

Genevieve Roch-Decter

2. Matt Allen’s Corner

THE PSYCHOLOGY OF MONEY

Dear Friends,

Every so often, there is a book that comes around that has a significant impact on my viewpoint. I know a lot about finance/investing, but “The Psychology of Money” by Morgan Housel offered many new ideas for me to ponder.

I believe that this book will be known to our kids/grandkids as a “personal finance classic.” Even though it has only been around since 2018, this book has already sold millions of copies.

Here are two lessons I learned from “The Psychology of Money” that changed how I view my finances forever.

1. Rich Man In The Car Paradox

“No one is more impressed with your stuff than you are.”

When you see someone driving a luxury car like a Lambo, you rarely think, “Wow, the guy driving that car is cool.” Instead, you think, “Wow, if I had that car, people would think I’m rich and cool.”

The wealth paradox is that while many pursue it to gain respect, admiration, and likability, it often results in others viewing their wealth as a yardstick for their own aspirations rather than a reason to admire the wealthy person.

This isn’t to suggest that one should forgo the pursuit of wealth or luxury – I myself enjoy both. It's about understanding that respect from others is often more effectively earned through qualities like humility, graciousness, intelligence, and empathy rather than through the possession of material items like high-end cars.

For example, have you ever said, “That person is super rich, but they are a complete jerk.” This is precisely the analogy that the Rich Man in the Car Paradox discusses.

2. “Your personal experiences make up maybe 0.00000001% of what’s happened in the world but maybe 80% of how you think the world works.”

This phenomenon is called “history bias,” and it shapes our viewpoints on politics, religion, philosophy, and finance based on our previous experiences in life. We believe this is how something should be because this is the only thing I know.

How does this apply to finance?

If you were born in the 1970s, the stock market went up 10x throughout your school years. The media/teachers stressed the importance of investing, and you went into adulthood with an emphasis on investing for wealth and retirement.

If you were born in the 1950s, the same market went precisely nowhere in your teens and 20s, meaning you were taught that saving money was more important than investing your money.

If you grow up in Michigan, your entire family works in manufacturing. You will emphasize the importance of manufacturing jobs more than someone born and raised in Silicon Valley and whose parents work at Tech Companies. The Great Depression was one of the worst economic events in the world's history. The stats are just unreal: 1 out of every 4 Americans were jobless, millions of Americans became homeless, the American Economy crashed, the stock market crashed, and this is to name a few things.

President John Fitzgerald Kennedy's Dad was one of the best Investors ever, and he believed a crash would happen. He moved his money around and ended up making millions off the stock market crash.

President JFK famously once said:

The way that JFK looked at the world is going to be completely different than someone who grew up homeless because of The Great Depression.

I think it is very important to remember this in everyday conversations and when you invest your money.

🎯 GRIT TAKE:

The Ultimate Goal Is Freedom…Sign up for GRIT VIP to read the rest of Matt’s GRIT take! 🚀

Cheers,

Matt Allen

3. Comin’ Up

EARNINGS AND ECONOMIC DATA

💰 Earnings:

Monday: GitLab

Tuesday: AutoZone

Wednesday: Chewy

Thursday: Lululemon, Dollar General, DocuSign

Friday: N/A

📈 Major Economic Events:

Monday: Factory orders

Tuesday: N/A

Wednesday: US trade deficit

Thursday: Initial jobless claims

Friday: US employment report

The author of this newsletter owns ETF’s (exchange traded funds) that may hold ownership interests in the companies discussed in this newsletter as of the published date of this newsletter. An insider to GRIT Capital Corporation currently holds an ownership interest in Royal Bank of Canada (RY), BROOKFIELD ASSET MANAGEMENT LTD (BAM), and Union Pacific Corp (UP) as of the published date of this newsletter. The insider to GRIT Capital Corporation does not guarantee that they will maintain their ownership interest in Royal Bank of Canada (RY), BROOKFIELD ASSET MANAGEMENT LTD (BAM), and Union Pacific Corp (UP) and may increase or sell such interest at any time.