Monday Takeaways: The 2024 Election Just Rewrote the Market Playbook

Shah Gilani|November 11, 2024

Election shockwaves.

A Bitcoin surge past $82,000.

The S&P’s 50th record high this year.

Last week just rewrote the market playbook.

And with the Fed’s latest rate cut, a potential Republican trifecta in Washington, and a stunning stat about crypto and gold…

We’re seeing a seismic shift in the markets.

This risk-on rally is just getting started… despite what Warren Buffett thinks.

Tune in for your critical Monday takeaways as we enter one of the most dynamic market environments we’ve seen. Don’t miss what’s moving your money… NOW.

Click on the thumbnail below to watch.

Note: The sky is the limit with how far the market can go under Trump. Get details on the money moves I’m convinced you need to make now right here.

Transcript

Shah Gilani here with your Monday Takeaways.

A lot to take away from last week. Holy mackerel.

Election week. Wow.

We know we have a new president-elect, Donald J. Trump.

It looks like the House may go to the Republicans. There are still 19 seats unaccounted for. While the tally continues, the Republicans only need five more to have a majority in the House. They have a majority in the Senate. Trifecta perhaps for the Republican Party.

Takeaway from that is a pretty clear takeoff runway for policy.

We’ll see how that plays out.

What else was there to be taken away from last week? The Federal Reserve cut the fed funds target range by another 25 basis points.

Not unexpected, and the market loved it. The market loved everything.

Last week, the takeaway from the election of Donald Trump, which created a Trump bump of some tremendous proportions, and the fact that the Fed cut rates set up for a perfect storm for both the markets. Equity markets, bond markets even, had a decent week for a change, and, of course, the crypto markets.

Last week saw the 50th new record high for the S&P in a year.

Wow. And I think that’s going to continue. Futures are up early this morning.

Crypto, Bitcoin, wow, up something like $6,000 on Sunday, looking like it’s going to open near $82,000. Well, it’s always trading, but looks like it’s going to hit the $82,000 mark today, maybe go higher. You had Dogecoin… you had some of the other coins rallying in sympathy.

So takeaway from there, people: crypto. Donald Trump wanted to be the crypto guy. He wanted to bring in voters. He wanted to be this new age digital type of president, but we can’t have Gary Gensler running the SEC anymore.

We’ve got to have someone who’s open to these new digital assets and who is going to propel them, and that’s what he has talked about. That’s what is happening because that’s the expectation the markets have.

The iShares Bitcoin Trust surpassed in assets under management of the iShares Gold Trust. So IBIT, the iShares Bitcoin ETF, in total assets, surpassed the iShares Gold Trust, symbol IAU. So IBIT now has more assets under management than IAU.

Is Bitcoin the new gold? Sure looks like it. So I think it’s going to continue. Takeaway from what we are seeing from last week is it’s “risk on,” people. If you don’t get that, then get on board. It’s not too late because this risk-on could last for some time for both cryptocurrencies and equity markets.

The only takeaway from last week was – and today is Monday – that’s Veterans Day, so the bond market is closed. Bonds have been bounced around, and I’m not sure bonds are going to participate in the risk-on equity market future and the risk-on crypto market future. I think bonds are in for a lot of battering, and we’ll see how that might play out a little bit this week because we get CPI on Wednesday.

CPI Wednesday, the month-over-month number is supposed to be about 0.2%. But year over year, which is in line with what expectations are, 0.2%, 0.3%, but the year-over-year increase in CPI is supposed to be a little higher than, I think, consensus. And consensus is looking for it to be flat, but we could see it higher.

Perhaps more importantly is PPI on Thursday. Producer Price Index numbers – really the input numbers that end up resulting in what CPI is going to look like a month later – PPI numbers aren’t supposed to be really good.

The month over month – these are October PPI numbers.

The year-over-year consensus estimates for PPI on Thursday: 2.3% for October. That’s up from 1.8% in September. So if producer prices are rising at a pretty fast clip, will that shake up equity markets? I don’t think – not much. It’s going to shake up bond markets because, first of all, we opened bond markets back up on Tuesday, and they got CPI right in their face on Wednesday. And then Thursday, they got PPI.

Friday, we got retail sales. It’s going to be a very interesting week for bonds. So if you trade bonds, be careful out there.

Otherwise, takeaways from last week and the futures this morning and what happened over the weekend with crypto trading is it’s risk-on, people. That’s all you need to know right now.

For those of you who want to know, “Oh my gosh. Should I start selling and taking my profits? À la Warren Buffett selling his Apple?” No.

It’s all good until it isn’t. And it’s going to be pretty good – not for all sectors, not for all asset classes.

You want to know more about that?

5 p.m. ET today.

I’m going to be online with Alpesh Patel, hedge fund manager out of London, good friend of mine, tremendous trader.

We’re going to go head to head on what he’s seeing from the other side of the pond, what I’m seeing from here. What sectors are going to be hot, what sectors are not, where to put your money, and how much to put where. We’re going to go deep. So 5 p.m. ET today, for subscribers for our services.

If you’re not a subscriber, get on board right here.

I’ll see you guys today at 5 p.m.

Cheers, everyone.