💸$100 Problems VS. $1,000 Solutions

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In fact, they’re offering Daily Dough readers up to 45% off this week.

From watchlists to trading strategies and alerts - this platform has it all!

Traders, investors, and entrepreneurs use TradingView to follow the markets and find the next big opportunity!

What’s on the Menu 🍴

Today, we've got something extra spicy cooking. 🌶️

Major chart patterns are shaping up, so buckle your seatbelt as we navigate what's on this week’s calendar.

We're also diving into portfolio management strategies to keep you ahead of the game.

And for the cherry on top? We're breaking down why Wall Street was blindsided by this year's bull market—so you can be the savvy investor who isn't.

• Be Cautious of Crypto Breakouts Traps ⚠️

• What To Watch This Week 👀

• $100 Problems VS. $1,000 Solutions 💸

• Wall Street Forecasters Fooled by 2023 Surge 🙈

Today’s newsletter is a 5 minute read.

Be Cautious of Crypto Breakouts Traps ⚠️

2022 was the year of carnage for crypto values. But 2023 has been the year of failed breakout attempts for altcoin charts.

We call these fakout breakouts or “FOBOs” - they sucker in bulls only to trap them.

One of the hottest crypto narratives recently has been gaming tokens. Upstart projects like GALA and SAND more than doubled in January on hype around the metaverse. But they’ve fizzled since.

Meanwhile, outliers like NAKA are up 570% year-to-date with beautiful price action.

NAKA is currently testing $.55, tempting breakout traders.

But we've been cautious trading breakouts in 2023 because so many altcoins have failed to sustain gains post-breakout.

The crypto TOTAL3 market cap (excluding BTC and ETH) sits below $450 billion - not yet in true altcoin season mode.

For example, popular crypto project PRIME saw a 285% run up from 2023 lows. But it had a failed breakout attempt at $4.50 last week.

Last month, we wrote about gaming tokens but warned we’re waiting for TOTAL3 above $450 billion before expecting a full-on altcoin run.

So for now, we think it’s prudent to trade cautiously on crypto breakouts with smaller position sizes and tighter stops.

Too many charts have produced failed breakouts and trapped eager bulls. We’ll wait for stronger indications of trend changes before aggressively trading these setups.

Patience and caution are virtuous when crypto markets are prone to producing head fakes. Tread carefully with breakout trades in the fickle altcoin arena.

What To Watch This Week 👀

Markets were choppy last week as investors digested a smorgasbord of economic data surrounding inflation and the global economy.

A recent uptick in inflation due to rising energy prices pushed the US CPI back up to 3.7% year-on-year and led the European Central Bank to surprise with a 0.25% rate increase.

All eyes will be on the US Federal Reserve this week as it meets to set rates. The market overwhelmingly expects the Fed to avoid raising rates this time around.

Regardless, watch out for changes in the Fed’s economic projections and volatility in the bond market this week.

The Bank of Japan and Bank of England will also set rates at their respective meetings this week.

It could be a light week for corporate news, but we’ll be keeping an eye on the auto sector as it battles the UAW strike. We’ll also be watching the following sectors on the move:

📈 Rising

• Uranium (U.UN / SRUUF)

• Cannabis (MSOS)

• Energy (XLE)

• Gold miners (GDX / GDXJ)

📉 Falling

• Homebuilders (XHB)

• Tech & semis (QQQ / SOXX)

• Momentum factor (MTUM)

The Daily Dough will keep you satiated with updates on all the critical events this week!

$100 Problems VS. $1,000 Solutions 💸

Want to build more wealth?

Stop worrying about $100 problems and start strategizing $1,000 solutions.

It’s true that finding ways to save hundreds of dollars a month can compound to larger gains over time.

Just look at how $100 will compound into over $114,000 dollars in 30 years.

So yes, the smaller stuff matters, but it’s only going to get you so far.

You don’t want to slightly move the needle towards financial freedom, you want to take action on things that will exponentially grow your money!

So what are $1,000 solutions?

1. Plug cash flow leaks & focus on income generation: Cash flow is what helps you reach your goals, and you want to MAXIMIZE it and plug any leaks where cash could be slipping through your hands.

   Yes, this means taking a look at your spending, but, it also means maximizing interest paid to you on your savings every month, maximizing your productivity & efficiency for more income, and more.

2. Find tax savings ASAP: Taxes are your biggest expense in life next to your home, and yet, many people don’t have a clue what’s going on with this bill!

   Almost every move you will make while building wealth has a tax consequence that MUST be considered.

   Make tax minimization a priority now. We think about taxed paid over your lifetime… not just this year! So the sooner you start strategizing the better.

3. Find high-fee investment costs: There are many places for professional fees to hide in your financial life. Many of them might be too high.

   A few places to look:

   -Your 401(k) or retirement plan at work: You’ll likely be paying admin fees for the plan, plus a fee for the funds you’re invested in. Check ETF/Mutual Fund expense ratios!

   1% is considered a high fund fee for reference and will need to be analyzed to be sure it’s worth the cost.

   -AUM fees with financial advisors: Too many people who work with financial advisors have no idea what they’re being charged annually.

   This is an ongoing fee that is a percentage of your assets (more assets = higher fees paid). Keep in mind the advisor may be doing NO MORE extra work as your balance grows.

   -Insurance contracts (life insurance): These are notorious for having exuberant fees. Be sure to check with the agent who sold you the contract.

   Ask for an in-force illustration WITH FEES included.

4. Optimize your investing allocation: This is a largely over-looked aspect of finding $1,000 solutions. Your asset allocation can be the difference between reaching your wealth goals or not.

   This is more a HUNDREDS OF THOUSANDS OF DOLLARS solution over your lifetime.

Feeling lost on where to start with strategizing $1,000 solutions?

That’s what our Wealth Building Community is for. Members get access to educational classes taught by a financial planner to help you get on the right track!

Wall Street Forecasters Fooled by 2023 Surge 🙈

Wall Street strategists are finally admitting they were wrong about the market this year.

After forecasting a downturn in 2023, many have raised their S&P 500 targets as the index continues its rally.

• Societe Generale's Manish Kabra lifted his year-end forecast to 4,750 from an initial prediction of 3,800.

• Piper Sandler's Michael Kantrowitz and BNP's Greg Boutle, who had the lowest outlooks among strategists, also boosted their calls just to keep pace with the nearly 16% gain this year.

• Even perma-bear Mike Wilson from Morgan Stanley conceded he was too pessimistic, though he still expects a 10% drop before 2023 ends.

The capitulation shows how analyst forecasts are different from actually managing money.

"Not only do you have to be right, but you must beat the market too," said Adam Sarhan of 50 Park Investments.

While strategists have raised 2023 targets, most remain cautious on 2024 as recession fears linger.

But with cooling inflation, strong retail sales, and steady rates from the Fed, some doubt the gloom.

Risks remain, however. The Fed could still hike rates if inflation rebounds…

And the bond market's recession signals continue flashing. The key question is how long the Fed keeps rates elevated after finishing hikes.

The 5% “risk-free” yield in savings accounts was too attractive for many folks, so they’ve missed out on this year’s stock and crypto gains.

At the Daily Dough, we keep looking for tactical strategies like our Bitcoin buys at $19k, or Carvana short squeeze play at $10.

No matter what the “geniuses” are forecasting - there’s always another massive opportunity right around the corner!

Food For Thought 🧠

"In the investing game, you're your best asset and worst liability. Train the asset, tame the liability.”
- Nikki Dunn

DISCLAIMER: We are not investment advisors, and this content is for educational purposes only. We don’t offer financial, legal, or tax advice. Nothing we say is a recommendation to buy or sell any assets. Trading and investing are extremely risky, so please be careful and do your own research.