🧾 Unveiling The 9 Levels of Wealth

What’s on the Menu 🍴

Company market values are sky high…

And so are the hopes for San Francisco 49er fans for a Super Bowl win!

Let’s jump into it:

• What to Watch This Week 👀

• How High Can The S&P 500 Fly? 🚀

• Unveiling The 9 Levels of Wealth 🧾

Today’s newsletter is a 5 minute read.

What to Watch This Week 👀

There are currently SEVEN publicly traded companies with market caps exceeding $1 TRILLION, and SIX of those companies will report their Q4 earnings this week.

With the Nasdaq and S&P 500 hitting fresh all-time highs last week, to say this would be a critical week for tech stocks might be an understatement!

A number of other important companies will be reporting as well, including GM, Boeing, Exxon Mobil, UPS, Starbucks, Chevron, and AMD:

We’ll be keeping a close eye on the 2024 guidance outlooks from these important companies.

If that wasn’t enough, we’ll also have a Fed meeting!

However, current expectations are for the US central bank to leave interest rates unchanged again this meeting.

Last week we saw three other central banks hold the line on rates as well, and PCE inflation data continued its slow cooling trend.

This week will mark the calendar turn from January to February, so we’ll get the January unemployment report in the US on Friday.

Here are the major macroeconomic releases for the week:

• Australian inflation (Tues)

• EU Q4 GDP estimates (Tues)

• US JOLTs job opening data (Tues)

• EU inflation (Wed & Thurs)

• US Federal Reserve meeting (Wed)

• Bank of England meeting (Thurs)

• US unemployment report for January (Fri)

It’s possible we could see more details on the rumored equity market stimulus package in China, so keep an eye on Chinese stocks.

Energy also caught a bounce last week, as did crypto. But will there be follow through?

We’ll be watching those and the following assets & sectors:

📈 Rising Recently:

• Tech, Software & Internet (QQQ / IGV)

• Cannabis (MSOS)

• Regional Banks (KRE)

• Airlines (JETS)

• Energy (XLE / XOP)

• Crypto Miners (WGMI)

📉 Falling Recently:

• Homebuilders (XHB)

• REITs (XLRE)

• Uranium (SRUUF)

• Tesla (TSLA)

How High Can The S&P 500 Fly? 🚀

As the S&P 500 continues it’s bullish trek higher, it has a lot of people wondering how high can she really go?

As we move deeper into earnings season (the fundamentals), and we take a look at the technicals, it’s looking like the probabilities are increasing that we could see a pretty key price level hit.

The $5,000 price level in the S&P 500 index.

It wouldn’t take much at this point.

We’re only roughly 2% away from reaching this very large price milestone.

The technicals align with this price level as well (as shown by the fibonacci extension pulled on the above chart.)

So, mix in a pot:

1. Tech earnings being potentially better than expected (to be seen this week)

2. An overall bullish technical trend

3. An aligning fibonacci level and key price point

4. An overwhelming amount of money market mutual fund cash sitting on the sidelines still as the market roars higher

5. A market that likely is being blind-sided by this rally to begin with (hello short-sellers😈)

And all of this could equal a rally into $5,000.

But… not so fast if you’re looking to deploy capital.

We haven’t really seen a significant correction in the index in quite some time. All of the pullbacks have been bullishly shallow.

So, if you’re looking to put capital to work- don’t be surprised if we DO see the market take a chill pill if we do in fact hit the $5,000 level.

We could be looking at a pretty quick correction from higher levels if they come. But, again, this really will depend on how good technology earnings are to justify the S&P 500 valuation.

We think there will be plenty of opportunities ahead in the market needless to say.

Get in our Wealth Building Community to keep up with our thoughts on the markets and how we’re putting our own capital to work.

Unveiling The 9 Levels of Wealth 🧾

Last week we talked about how to best way to define financial freedom, which is through an “escape velocity portfolio”…

But wealth isn't just about how much you have in the bank; it’s a lifestyle, a state of mind…

And for some, growing their dough is a game with levels that makes video games feel as boring as watching tumbleweeds in the desert.

Let's break down the 9 levels of wealth:

🌮 Level 1 – The Grocery Gaze: When you're more focused on avocados' ripeness than the number on the cash register, you've stepped into the first circle of wealth. It's that sweet spot where you're doing well enough that a spike in almond milk prices won’t sour your day.

🍽️ Level 2 – The Restaurant Riddle: Ever gawk at the bottom of a restaurant bill with wide eyes?

At this level, the bill might as well be written in ancient Greek for all you care. You’re dining where the experience outweighs the expense.

We recently spent the month in Mexico City, which is a culinary powerhouse!

I took a group of friends out to one of the nicest steak restaurants in the city…

And it was wonderful not sweating the $1,000+ bill that accompanied our night out.

💺 Level 3 – The Business Class Club: If clouds are your frequent companions and you can’t remember the last time you didn't have enough legroom, welcome to the high-flying club.

This is where air travel still has its charm, and you're not squeezed in the middle seat.

I’ve optimized the rewards points game and haven’t had to pay cash for a business class flight in over a decade.

Last year, we were able to fly business class on the longest flight in the world for ZERO dollars… twice!

New York to Singapore - The World’s Longest Flight

🏡 Level 4 – The Home Collection: Less about the number of keys on your keychain and more about the pins on your global map, owning multiple homes means you've got seasonal living down to an art.

🧑‍🍳 Level 5 – The Culinary Command: With a personal chef, your kitchen is a gourmet battleground, and meals are events.

This is the level where you've not only got a name for every dish but a story for every spice.

🌅 Level 6 – The Friendship Financier: You're the unofficial sponsor of memories, whisking friends away to adventures without a thought about splitting the bill.

Your generosity becomes as legendary as the trips themselves.

🛫 Level 7 – The Jet Setters: If 'boarding pass' sounds archaic to you, it's because your flights don’t have seat numbers, and the skies are truly yours.

Charter jets are the new taxis.

✈️ Level 8 – The Winged Wonder: Owning your own jet is like having a pair of wings…

You fly where you want when you want, and the sky is your second home.

💸 Level 9 – The Everything's-on-the-House High: When wealth reaches a crescendo, the concept of 'expense' becomes extinct.

Money is no object, and the world is your oyster – preferably one with pearls.

So, whether you're sipping champagne in first class or hiring a private island for a weekend getaway, each level of wealth opens up a new chapter of freedom and luxury.

Just remember, with great wealth comes great responsibility – or at least a great accountant. 🤑

Food For Thought 🧠

"The goal isn't more money.
The goal is living life on your terms.”
- Chris Brogan

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.