Hi There! This past week, I came across the phrase “lifestyle creep.” It is the slow upgrading of what feels “normal” every time you earn more, until old luxuries start feeling like necessities. It happens so gradually you hardly notice, and then one day you are making more money but feeling more trapped.

I remember years ago, colleagues and even family used to ask when I was going to move into a bigger house in a “better” neighbourhood. A lot of folks were moving, especially after the tension following the Mike Brown shooting. My answer was always no. I loved my home, the size, the location, and I wanted my raises to pay off debt and create options, not bigger bills. Fast forward to 2020. Had I caved to the pressure, leaving my corporate job to focus on my daughter and my mum and start the Rhoda Report would have been a much harder move. It was a decision that protected my future, even when it looked boring on the outside.

Valentine’s weekend can create that same pressure, just dressed up in chocolate and candles. The numbers alone can make you blink twice, just like some of you did when you read last week’s Rhoda Report stating that Valentine’s spending is projected to hit $29.1 billion this year. Love is not supposed to leave you stressed, broke, and starting Monday with regret or, worse, with a lovers’ quarrel.

I also keep thinking about how our rich, Black history gives us a beautiful roadmap for this. In the Caribbean, our families practiced Ujamaa (Cooperative Economics) through the Sou-Sou. They always found ways to celebrate without sinking the ship. A way to pool resources, share the load, and make room for joy while still being responsible. My mom and her good-good girlfriends had a Sou-Sou for moments like this, so nobody had to overextend to feel included. Talk about financial wisdom. They were masters of resourcefulness, pooling their "hands" so they could splurge responsibly without touching their "legacy" funds or stressing their well-being.

So here is your permission to celebrate without guilt.

Here are a few simple “Love Budgeting” moves to keep the weekend sweet without the stress:

• Step 1: Set the number out loud before you spend.

  Decide your total budget for the weekend and say it plainly.

  Examples: “We are keeping it under 100” or “My budget is 60.”

  The goal is no silent struggling and no surprise credit card pain on Monday.

• Step 2: Pick one splurge and one support.

  Choose the one thing that feels special, a dinner, a gift, or an experience.

  Then balance it with something that supports you, a long walk together, a home cooked meal, a mocktail night, extra water, or an early bedtime.

  You get to enjoy yourself without feeling sluggish or regretful after.

• Step 3: Do a Financial Date Night, even if it is 20 minutes.

  With your partner or your money buddy (if single), share:

  • one financial fear you have been carrying

  • one big dream you want to build toward

  Then pick one small action for next week, like checking balances, paying a bill, or setting up an automatic transfer.

  Trust grows when you stop guessing and start talking.

You deserve to be celebrated, and you deserve a future that isn't weighed down by "creep" or chronic financial stress. Let’s make this weekend about connection, legacy, and a little bit of chocolate (for the antioxidants, of course!).

Stay disciplined, love deeply, and keep growing. 

Alright, let’s dig in!

The first week of February delivered a classic “rotation week” where the headline indexes looked messy, but the market under the surface told a more interesting story. U.S. equities faced pressure from mega cap tech and software as investors wrestled with AI competition fears and the sheer scale of planned AI spending. At the same time, dip buyers stepped in late week and participation broadened into small and mid caps, helping stabilize sentiment. Globally, Europe leaned firmer on easing political angst and cooling inflation, while parts of Asia lagged amid tech weakness and pre holiday thinning volume.

U.S. Markets Recap (February 1, 2026 -February 7, 2026)

Equities:

U.S. index performance split sharply:

• Dow gained 2.5% for the week and closed above 50,000 for the first time.

• S&P 500 slipped 0.1%.

• Nasdaq fell 1.8% as mega cap tech selling stayed concentrated.

The concentration matters. The Magnificent 7 market cap dropped 3.6%, while the other 493 S&P stocks gained about 1.2% in aggregate. In other words, plenty of stocks did fine, but the biggest names dragged the indexes.

Investors got rattled by AI economics and capital intensity. Hyperscalers pointed to $570 to $650 billion in combined 2026 AI related capex. During their earnings release, Alphabet targets $185 billion and Amazon signals $200 billion in spending plans.

Sector rotation also showed up clearly. Eight of eleven sectors were up on the week, led by defensive and value leaning areas.

Fixed Income:

Core bonds slipped modestly, but the more important story was in credit risk, especially for software related borrowers. There were widening spreads in software leveraged credit as markets reprice business model risk tied to AI displacement. The concern is not “rates today,” it is “durability of revenue tomorrow,” which can hit asset light, leveraged companies hard when lenders start stress testing downside scenarios.

Treasury yields edged slightly lower:

• 1 year: 3.43%

• 10 year: 4.21%

• 30 year: 4.85%

Commodities:

Commodities stayed choppy.

• Metals were volatile, with silver down more than 30% from its January 28 peak.

• Natural gas fell roughly 20% as the arctic blast faded and storage withdrawals came in lighter than expected.

• Gold swung during the week but finished firmer at the end of last week.

Currencies:

Last week, the U.S. dollar snapped a two week losing streak, helped by the nomination of Kevin Warsh as the next Fed Chair. The euro and yen weakened alongside that dollar strength.

U.S. Economic Recap (February 1, 2026 -February 7, 2026)

Even with the payrolls report delayed, the labour picture still leaned “cooling but not collapsing.”

Key labour signals from last week included:

• Job openings fell to 6.54 million in December (lowest since 2020), with the labour market described as “low hire, low fire.”

• ADP payrolls rose just 22,000 in January, with job gains concentrated in education and health services.

• Planned layoffs hit 108,435 in January, up 118% year over year and the highest January total since 2009.

• Employers announced 108,435 layoffs and frame it as a possible harbinger of more.

Consumer mood improved, but it is uneven. University of Michigan sentiment was 57.3 (a six month high) with year ahead inflation expectations down to 3.5%.

Expect slower job growth around 50,000 per month and a gradual rise in unemployment as 2026 progresses, while higher wealth households remain better positioned.

Global Markets Recap (February 1, 2026 -February 7, 2026)

Europe:

Europe outperformed.

• France’s CAC 40 benefited from easing political risk after the 2026 budget passed and the prime minister survived two no confidence votes.

• The UK’s FTSE 100 outperformed as the Bank of England (BoE) held rates, but the vote was a close 5 to 4, boosting March cut expectations.

The Eurozone inflation was cited at 1.7% year over year in January, and the ECB kept the deposit rate at 2.0%. While, the BoE held Bank Rate at 3.75% with that 5 to 4 split.

Asia:

Asian markets were was mixed.

• Tech leaning markets like South Korea and Taiwan struggled on AI jitters.

• China and Hong Kong softened amid thinner pre holiday volume and sector weakness.

• Japan stood out, supported by election expectations and strong earnings takeaways, and the Japanese markets showed strength in activity data as well.

Crypto Recap (February 1, 2026 -February 7, 2026)

Crypto delivered a sharp risk off reminder.

• Bitcoin fell 16.2% week over week, dipped near $60,000, then rebounded toward $70,000.

• Ethereum fell about 23.79% on the week.

• Altcoin drawdowns were severe, with weekly moves such as Solana -25.61% and BNB -23.49%.

• There were liquidations of $2.5B on Feb 1 alone and $5B+ over the week, plus extreme fear readings (Crypto Fear & Greed Index dropped to 6 on Feb 7, 2026).

Top crypto gainers (last week): 

Here are other key crypto highlights from last week

• Crypto wallet provider Payy launched Ethereum L2 with built-in transaction privacy.

• CME CEO Duffy said exchange is exploring issuing its own token.

• NFT market cap slid back to 2021 pre-hype levels, near $1.5B.

• Coinme offered regulated, blockchain-based infrastructure that connects stablecoins to existing financial systems.

This week has market-moving lineups!!

Key U.S. economic releases:

• Retail Sales (Tuesday)

• Employment Cost Index (Tuesday)

• Nonfarm Payrolls, Unemployment Rate, Average Hourly Earnings (Wednesday)

• Jobless Claims (Thursday)

• Existing Home Sales (Thursday)

• CPI Inflation (Friday) (Typically not released on a Friday)

Events to Watch

Geopolitics remains a primary volatility source, including:

• Venezuela developments

• Tariff threats and pushback

• Greenland related tensions and reported foreign selling pressure narratives

• Netanyahu Trump talks on Feb 11 and elevated Iran risk

• Munich Security Conference involvement by U.S. officials

These are the kinds of headlines that can widen credit spreads and whip equities and oil intraday.

Fed Speakers:

• Waller (Mon 1:30 PM)

• Bostic (Mon 3:15 PM)

• Hammack (Tue 12:00 PM)

• Logan (Tue 1:00 PM)

• Logan (Thu 7:00 PM)

• Miran (Thu 7:05 PM)

Listen for any language about “higher for longer,” balance sheet policy, or discomfort with easing financial conditions. With CPI Friday, speakers can prime the market’s emotional response before the print.

Earnings: 

Notable earnings releases are outlined in red below.

Medium-to-High Impact Global Economic Events This Week:

• ECB President Christine Lagarde speaks Feb 9

• BoE’s Catherine Mann in a panel

• Japan markets closed Feb 11 (National Foundation Day), which can thin liquidity in Asia hours

• China related instructions to curb U.S. Treasury exposure and tightening crypto policy headwinds

Other Medium-to-High impact global economic events this week are shown in the charts below.

Week 2/01/26 - 2/07/26 Recap

Special Tools & Strategies - Risk-On/Risk-Off

Imagine you are scrolling through Bloomberg and a headline jumps out: “Ether Resumes Plunge, Tracking Bitcoin Slide on Risk off Mood.” You blink, take a sip of coffee, and think, “Risk off… what does that even mean, and why is it dragging everything down with it?”

That phrase is Wall Street shorthand for a very old human habit: when people feel confident, they take chances. When they feel nervous, they protect what they have.

What “risk on” and “risk off” mean

Risk on and risk off describe how investor mood pushes money to move around.

• Risk on: Investors feel optimistic about growth, earnings, and financial conditions. They are willing to buy assets that can swing more because the reward looks worth it.

• Risk off: Investors feel uncertainty or fear and start prioritizing safety over upside. Money rotates toward assets expected to hold up better in stress.

Think of it like traffic. Risk on is everyone taking the highway, driving faster, trying to get somewhere. Risk off is the storm warning going off and everybody slows down, pulls into the right lane, and leaves extra space.

Risk-On Assets

In risk on markets, money tends to flow toward “growth and bounce” assets, including:

• Stocks, especially growth and high beta names (the ones that move more than the market)

• Small caps and emerging markets

• High yield, also called junk bonds (more return, more credit risk)

• Cyclical commodities tied to growth

• Crypto, often treated like a higher volatility extension of tech risk

Risk-Off Assets

In risk off markets, investors prefer “seat belt” assets, including:

• US Treasuries and high quality government bonds

• Gold and sometimes other precious metals

• Cash and the US dollar

• Safe haven currencies like the Japanese yen and Swiss franc

• Defensive stock sectors like utilities, consumer staples, and healthcare

What flips the market from risk on to risk off

Usually it is not one headline. It is a mix of signals that change how investors price the future:

Key drivers

• Central bank policy: Rate cuts or easier financial conditions often support risk on behaviour.

• Growth and jobs data: Hot data can raise rate fears. Weak data can raise recession fears. Either can trigger risk off depending on what the market is focused on that week.

• Geopolitics: War shocks and sudden tension tend to spark flight to safety.

• Volatility: A rising VIX is the classic fear gauge. Many traders treat moves above the low 20s as a caution flag.

How to navigate each environment

• In risk on, focus on trend and momentum, but size positions smaller than your ego wants. Volatility is still real.

• In risk off, tighten risk controls, take profits faster, and consider holding more cash or higher quality exposures until price action steadies.

How to identify sentiment and make decisions

Here is a simple “coffee napkin” checklist:

1. Look at stocks: Are major indexes pushing higher on strong breadth, or are they rolling over?

2. Check the VIX (explained in Issues 82 and 83): Is it calm (often below 20) or jumpy (often above 20 to 25)?

3. Watch bonds and gold: Are Treasuries catching a bid and is gold staying supported?

4. Watch crypto’s behaviour: In early 2026, commentary has highlighted bitcoin trading more like a tech linked risk asset than a steady safe haven.

Quick comparison table

Why this matters in real life

According to articles from Reuters and Trading Economics, as of February 10, 2026, gold has been trading around the $5,050 area per ounce, a sign that caution is still sitting under the surface even when stocks bounce. Also, the 10 year Treasury yield has been around the 4.15% area, reflecting shifting expectations about rates and growth.

Practical value is simple: you stop taking mixed signals personally. If your AI stocks are slipping while gold holds firm, it might not be “you.” It might be the market switching moods.

Next time you are watching CNBC or FOX Business, or flipping through Forbes and the New York Times, listen for the language. Words like flight to safety, defensive rotation, de risking, risk appetite, and melt up are often the smoke before the fire. When you catch them early, you can adjust before the crowd does.

Disclaimer: This newsletter is strictly educational. The information this report provides does not constitute investment, financial, trading, or any other advice. You should not treat any of the report’s content as such. Please be careful and do your research.