Weekly Market Bites

end of week markets update

The first week of December is off to a solid start:

• The S&P 500 hit yet another record - with an intraday high of 6,094

• The Nasdaq 100 also hit a new all-time high

• Bitcoin touched $100,000 for the first time 🪙 

It’s looking like the stock market might just deliver the classic Santa Claus rally. December being historically the most seasonally positive month for stocks, up on average 75% 🎅📈

Here’s a summary of this weeks action:

1) To recap year to date:

• The S&P 500 is up almost ~30%

• The worst drawdown this year was not even 10%

• There have been more than 50 new all-time highs

Here’s something to think about: if you couldn’t invest or stay invested during a run like this, it might be time to reevaluate your approach.

Part of the problem is that every step of the way, there are people shouting that the economy is collapsing, the stock market is a bubble, and doom is just around the corner.

Take David Rosenberg, for example—the former Chief Economist and Strategist for Merrill Lynch. He spent the last two years on TV and social media predicting a market crash.

Yesterday he finally admitted that he got it wrong:

Here’s the juicy bits:

Some say the market peaks when there are no bears left on Wall Street. One way or another, we’re gonna find out.

2) Beyond the stock market and crypto no other topic dominates the economic conversation as much as real estate - and how expensive housing has gotten.

The average home price in the US has gone up over 50% in the last five years. Although wages have gone up, they have not increased as much. Leading to a major affordability crisis.

What city is leading the charge: Miami is up almost 80% 👀 over the past 5 years!

What would need to happen for housing prices to go back to where they where in 2019:

3) Of course, expensive real estate is not only a US thing.

It might be some of the most expensive in absolute terms, but when looking at housing cost vs income there are many places around the world doing much worse.

Case in point: Canadians when real estate prices conversations come up…

But it’s happening globally: Australia, the UK, New Zealand, Canada, as well as USA…

4) The crypto story of the week, that your not gonna wanna miss:

The "Hawk Tuah Girl," Haliey Welch, tried to cash in on her viral fame by launching a memecoin called $HAWK.

The coin's value skyrocketed to $490 million within minutes of launch on Thursday, only to crash and burn by 90% just hours later.

Rug Pull baby 🤣 

Welch insisted it wasn't a scam..

But literally as she was live broadcasting, X was moderating the posts with the following:

🤣 🤣 🤣 🤣 

charts

Chinese carmakers are eating up an increasing share of the auto-market. Even the mighty Japanese brands are on the retreat.

European carmakers are also big losers in the big shift underway.

For those of you that like to benchmark:

The typical 35 to 39-year-old has about $138,000 in wealth, though the higher tiers pull the average up to around $500,000.

And finally, some parting wisdom