💖 Profit From Tapping into Teen-Driven Markets?

What’s on the Menu 🍴

Could teenagers be the key to building wealth?

Ok, hear us out before you throw your pizza across the lunch table!

We’ve had some massive gains investing in teen-led trends and want to share some of the secret sauce with you!

Let’s gobble up today’s wisdom:

• SEC Steps Back, Fuels Bitcoin ETF Hopes 🛑

• Profit From Tapping into Teen-Driven Markets? 💖

• What To Watch This Week 👀

• Chart of the Day: Is This Ready to Explode? 💥

Today’s newsletter is a 4 minute read.

SEC Steps Back, Fuels Bitcoin ETF Hopes 🛑

Let's cut right to the chase: A Bitcoin ETF might just be around the corner for the U.S. markets.

Why?

The SEC decided not to challenge a court decision that criticized its earlier denial of Grayscale's ETF application.

No appeals, no drama.

Now, I know what you're thinking. "An ETF, so what?"

As we covered back in August, ETFs are like the Swiss Army knife of investing—versatile and accessible for Joe and Jane Investor.

Grayscale's Bitcoin Trust, or GBTC, is currently the leader of crypto funds but has been trading at a discount to its actual Bitcoin holdings.

That discount reached a cringe-worthy 50% at one point but has now reeled back to around 17%.

So what does it mean for you?

If Grayscale successfully converts GBTC into an ETF, that discount could vanish. ETFs have a built-in creation-redemption model, letting fund managers adjust supply to meet demand.

But hang on to your moon boots! The SEC still has the authority to deny the application for other reasons.

That said, given they let two bitcoin futures funds slip through the regulatory net, it'll be hard to say no without looking like they’re picking favorites.

What's next?

Grayscale isn't alone in the race; BlackRock and Fidelity are also in the queue for SEC approval.

This could be your cue to start eyeing these funds and consider how a U.S. Bitcoin ETF might fit into your portfolio.

Is the U.S. finally ready for a Bitcoin ETF?

Your move, SEC.

Profit From Tapping into Teen-Driven Markets? 💖

Piper Sandler released its 46th semi-annual “Taking Stock With Teens” survey.

Teens set trends, and trends are investable.

This is a survey that we look at in our Wealth Building Community to stay on top of hot brands that might be investment-worthy.

Let’s look at some highlights:

1. “Males led the increase in teen spending, with upper income male spend up 11% Y/Y and up 11% vs. spring '23, while female spend was down 8% Y/Y and down 2% vs. spring '23”

   Why this matters? Females typically lead the charge on consumer spending. This has led many retailers & social platforms like Lululemon (LULU), Pinterest (PINS) and Etsy (ETSY) trying to attract more men as buyers.

   Male spending being up is a good sign for retailers trying to get more share of wallet. It’s also important to note that 25% of teen male spending is on food.

2. “The core beauty wallet (cosmetics, skincare, fragrance) stood at $324/year (+23% Y/Y), led by cosmetics (+33% Y/Y)”

   The beauty industry has shown a lot of strength coming out of the pandemic.

   When looking at a company like Ulta (ULTA), it’s easy to see that they’re having no trouble getting customers to purchase, and growth projections are still healthy in the face of a slowing economy.

3. “SQ’s Cash App ranked No. 1 for most preferred peer-to-peer money transfer app at 50% vs. PYPL’s Venmo at 36%”

   For investors of Square (SQ) & and Paypal (PYPL), it’s good news to hear of the clear dominance and sticking power these two have with peer-to-peer transfers.

4. “87% of teens own an iPhone; 88% expect an iPhone to be their next phone; 34% own an Apple Watch”

   What a win for AAPL! It’s clear that iPhones are the favored choice of phone, and it doesn’t even come close.

   Teens getting into their ecosystem at a young age makes for a high lifetime value of the customer.

Some other highlights:

So, how do we take this info and turn it into investing opportunities?

Here are some potential opportunities we see:

• Fintech companies with attractive valuations:

  • SQ (Block)

  • PYPL (Paypal)

• Retailers with high future growth and market penetration potential:

  • LULU (Lululemon)

• Affordable Big Box Retailers:

  • ULTA (Ulta)

  • TGT (Target)

• Overall tech with staying power:

  • AAPL (Apple) - While Apple isn’t a cheap stock, it’s more so looked at as a “safe-haven”

Overall, investing in trends can be very lucrative, especially while stock prices are showing more value like they are now.

It’s also good to see many names we’re already invested in staying on the list!

Want to join a community of investors on the hunt for the next big investing opportunity? Join our Wealth Building Community!

What To Watch This Week 👀

Inflation data, volatile bond yields, geopolitical turmoil, rising crude oil & gold prices, weakening consumer sentiment, resilient global bank earnings…

Last week was quite a ride!

This week promises to be another whirlwind in financial markets…

Q3 earnings reporting season gets spicier as regional banks and credit card companies chime in, as well as a few large tech companies such as Tesla, TSMC, & Netflix.

Beyond earnings, there’s a smorgasbord of macroeconomic data on the menu:

• UK unemployment, inflation & retail sales

• US retail sales

• Canadian inflation

• China retail sales & industrial production

• Japan inflation

Federal Reserve chairman Jerome Powell will also speak on Friday, which could have an impact on the turbulent bond market.

There’s been a surprising amount of carnage that’s taken place in stocks lately, with almost 80% of stocks below their 50-day moving average despite the major indexes holding up.

We’ll be keeping a close eye on these sectors & asset classes this week:

📈 Rising

• Energy (XLE)

• Gold & gold miners (GLD / GDX)

• Defense (ITA)

📉 Falling

• Regional Banks (KRE)

• Consumer Staples (XLP)

• Small Caps (IWM)

• Airlines (JETS)

• Homebuilders (XHB)

• Solar & Cleantech (TAN)

• Retail (XRT)

Stay tuned as we dive deeper into all the major market developments this week!

Chart of the Day:
CME Bitcoin Futures Ready to Pop or Flop? 💥

Since the Bitcoin ETF is all the buzz lately, let’s take a look at today’s chart!

The CME Bitcoin Futures chart shows a massive consolidation pattern…

And we think this is coiling up for a big move soon.

It’s been dead-flat since March, and “squeezing” around $27k.

Instead of trying to guess if it’s going to break up or down, we like to set up trade ideas AFTER market direction is confirmed.

We’re looking for either:

1) a breakout above $28k

or…

2) a breakdown below $25k

So this week, bet your bottom dollar we’ll be honed in on this bitcoin chart.

Food For Thought 🧠

The most contrarian thing of all is not to oppose the crowd but to think for yourself."
- Peter Thiel

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.