🗞️ Augury ⍺ Daily | Shift towards small-cap stocks and bonds

Good morning 👋

Here's the latest news I'm tracking today.

🪙Crypto

Bitcoin Surges Past $70K Following Trump's Support for Friendly Regulation

Bitcoin's price increased on Monday, buoyed by comments from Donald Trump, who suggested the U.S. should lead in cryptocurrency regulation and hinted at establishing a national Bitcoin stockpile. Despite initial negative responses to his speech, market optimism prevailed, pushing Bitcoin up 2.7% to $70,018. Meanwhile, the broader cryptocurrency market benefited from expectations of more accommodating U.S. regulations and speculation around interest rate cuts. Additionally, the recent launch of new spot Ethereum ETFs generated significant net inflows, although Grayscale’s ETHE fund faced substantial outflows.

NIST to Finalize Post-Quantum Cryptography Standards by Year-End

The U.S. National Institute of Standards and Technology (NIST) is set to release four finalized post-quantum cryptography (PQC) algorithms, with expectations for their arrival by the end of the year. As organizations prepare for the new standards, experts emphasize the importance of assessing existing cryptographic landscapes, as many organizations lack adequate oversight of their cryptographic assets. While vulnerabilities in the new algorithms may emerge over time, it is critical for businesses to begin strategic planning and ensure agility in their cryptography management. With NIST's guidance, the global rollout of PQC is anticipated, although organizations utilizing IoT devices will face unique challenges and must start preparing for a transition to these new standards immediately.

📈 Stocks / Finance

Investment Shift: Small-Cap Stocks Surge as Bank of America Projects Growth

Market trends indicate a significant shift towards small-cap stocks and bonds, with financial sector activity serving as a crucial leading indicator for investors. Bank of America (BAC) has demonstrated resilience with a 2.8% GDP growth in the U.S., largely driven by consumer spending and a record level of client deposits exceeding $4 trillion. The bank anticipates an increase in net interest income driven by lower interest rates, which could come by September 2024, potentially bolstering earnings and facilitating stock buybacks of up to $25 billion. Analysts forecast a price target of $49 for BAC shares, suggesting a possible 70% upside, alongside a consistent dividend yielding 2.3%.

Mastering Market Psychology: Key to Successful Stock Trading

The article explores the often-overlooked significance of market psychology in stock trading, emphasizing that a trader's mindset can greatly influence success. Key emotions, such as fear of missing out (FOMO), greed, hope, and fear, are identified as major obstacles that can lead to poor trading decisions, particularly for inexperienced investors. Through a hypothetical example of a trader named James, the narrative illustrates the emotional rollercoaster many face while navigating the market, highlighting the consequences of failing to manage psychological factors. Ultimately, mastering trading psychology is presented as essential for achieving profitability in the financial markets.

Wall Street Strategists Warn Tech Stock Sell-Off May Continue

The technology sector is experiencing a significant downturn as investors shift focus from Big Tech stocks to small-cap investments, marking a notable trend reversal. The Nasdaq 100 has faced consecutive weekly declines, pressured by disappointing earnings reports and concerns over increased AI spending without immediate returns. Analysts express that the market has become overvalued, pointing to a potential valuation correction driven by a gap between anticipated spending growth and expected revenue increases. Upcoming earnings reports from major tech companies will be critical, as any further disappointments could exacerbate the current market pressures.