Jon Kutsmeda TV's video: SUNDAY SIGNAL - Nov 07 2021 - Episode 9

Welcome to the SUNDAY SIGNAL. Every Sunday Jon Kutsmeda recaps the previous week in financial markets and discusses the week ahead, along with sharing pro level insight from expert guests. Today's episode looks back at the week of November 1st and ahead towards the week of November 08, 2021. To make sure you always get your weekend finance fix, please subscribe to my channel. You can also follow @TheSundaySignal on twitter (https://twitter.com/TheSundaySignal) and Jon on Instagram. (https://www.instagram.com/JonKutsmeda) MARKET RECAP: November is Starting out on a positive note, with stocks having their best week in four months. The big news last week was the Federal Reserve announcing it will begin tapering the pace of its monthly bond purchases. The Fed will reduce the $120 billion monthly asset purchases by $15 billion; $10 Billion less of US treasuries, and $5 billion less of mortgage backed securities. If similar reductions followed each month as expected, the purchases will be phased out entirely by next summer. Putting things into context was Genevieve Roch-Decter who in a Twitter post, quipped: “The FED said that in an effort to reduce inflation they will reduce bond purchases by $15 billion a month despite having already purchased $9 trillion worth. This is like me saying I'm going to fix global warming by dropping ice cubes in the ocean." Speaking of inflation, Fed Chairmen Jerome Powell continued to suggest the recent higher than expected inflation pressures are likely to be transitory. As a result, the Fed signaled that rate hikes were not to be expected anytime soon. This dovish outlook from the Fed, helped the S&P 500 rally to new all-time highs, as the Fed Funds Futures market is now forecasting less than 2 hikes next year, from 2.5 hikes prior to the FOMC announcement, with the first hike now expected in July. U.S. Treasury yields dropped on the news and bonds continued to rally the rest of the week, shrugging off a stronger than forecasted non-farm payroll report which showed the US economy added 531,000 jobs in October, including large upward revisions for the prior two months. In global news, and on the topic of central bank rate decisions, the ECB’s Christine Lagarde made it very clear that a rate hike in 2022 is “very unlikely”. Before we move on let’s take a look at the major U.S. indexes, The Dow Jones was up 1.4% to 36,328. The S&P hit new all-time highs ending the week at 4,698, up 2%. Meanwhile, the Nasdaq was up 3% to 15,972, and the Russell 2000 had another strong week, up 6% to 2,437. The 10-Treasury Bond finished at 1.45%, and Oil closed on the week at $81.52, down 2.5% after it was suggested the Biden administration might release supply from the strategic petroleum reserve to ease supply pressures that have led to a surge in the price of oil, since summer. Jumping into the world of cryptocurrencies… After surging 7,500% in under 4 hours, the ‘Squid Game’ cryptocurrency crashed to $0, wiping out all investors. Several celebrities and politicians announced they have chosen to take at least a portion, if not all of their income in Bitcoin. The names included comedian and podcaster Joe Rogan, NFL quarterback Aaron Rodgers, newly elected NYC Mayor Eric Adams, as well as Miami mayor Francis Suarez, and Tampa Bay mayor Jane Castor. The NFT NYC Conference kicked off on Monday to more than 5,000 attendees and satellite event participants. The highlights from the event were many, including an announcement by Quentin Tarantino that he is auctioning off seven exclusive NFT’s that will feature hand-written uncut scenes from the original Pulp Fiction screenplay. During the final day of the event the topic of conversation among panelists and spectators was regulation and taxation. Specifically, some very unfriendly legislation that was inserted into the $1.5 trillion infrastructure bill, which was just passed late Saturday evening. A provision in the bill amends tax code section 6050i. Under the law in-person CASH transactions over $10,000 require the RECIPIENT to record the nature of the transaction, and verify the sender’s personal information by collecting their Social Security number and other related information. Unlike other tax code violations, failure to comply is treated as a felony. On a more positive note, Ethereum set a new all-time high, while Bitcoin remained above $60,000. The biggest gainers on the week worth noting were Solana, Avalanche, and Polkadot, each up over 20%, with Solana leading the pack up 30%. The biggest losers were HEX and SHIBA both down over 10%, with DOGE also down slightly at the end of the week.