Hello and welcome to Alts Cafe
Have you tried investing in Uranium? All the cool kids are doing it.
It was a record-setting week for Altea members. Check out the update below.
Highlights from the full issue:
- Macro: The US economy grew 2.8% in Q2 2024
- Real Estate: Existing-home sales fell 5.4% in June
- Startups: DoorDash partnered with Save-A-Lot
- Private Credit: Instructure agreed to be acquired by KKR
- Crypto: The SEC approved 9 spot ETH ETFs
- NFTs: NFT sales volume surged past $107 million
- Art: US Justice Department recovered a $1.2 million Picasso
- Vintage Autos: 60% of Gen Z want to own a classic car
- Coins: A Gibraltar 50p coin sold for £4,500
- Farmland: Iowa farmland values declined 2.4% in 6 months
- Luxury: Kering reported an 11% drop in Q2 sales
- Wine, Tequila, and Spirits: LVMH’s wine sales declined 12%
- Film & Music: Ticketmaster is acquiring Quicket
- Precious Metals: Gold prices slipped to a two-week low
- Collectibles: Indiana Jones’ fedora may fetch up to $500,000
- Websites: FitFast.com sold for $28,333
Let’s go.
Wyatt
Table of Contents
Macro View
Bullish News
- The US economy grew 2.8% in Q2 2024, double the 1.4% growth pace in the first quarter.
- UK GDP increased by 0.7% in Q1 2024, now 1.8% above pre-pandemic levels.
- Brazil’s economy is expected to grow 2.0% in both 2024 and 2025, supported by a hot labor market and fiscal stimulus.
- The price of electricity from new solar capacity has declined by over 90% in the last decade, with solar expected to be the largest power source by the mid-2040s.
- The stock market forecast for the next six months is bullish, with the S&P 500 ending H1 2024 at an all-time high of 5537, up 16%.
Bearish News
- About 3 in 5 Americans believe the US is currently in a recession, per an Affirm survey.
- Macro hedge funds sold $20 billion in equities on Wednesday and plan to shed at least $25 billion more next week.
- China cut its one-year medium-term lending rate by 20 basis points to 2.3% to boost its slowing economy.
- Recession signals are unreliable post-pandemic, with traditional indicators like temp employment declines and an inverted yield curve failing to predict downturns.
- South Korea’s economy unexpectedly shrank 0.2% in Q2, the sharpest contraction since 2022.
- US authorities charged short seller Andrew Left and Citron Capital with market manipulation and investor fraud.
- Many food companies are seeing profits jump as they continue raising prices, according to a Guardian analysis.
What are the odds?
Kashi is now predicting a 91% chance of a red rate cut by November.
Get $25 to play around with using this link.
What are we doing?
Altea Highlights
Check out the full roundup.
🤝 Live Deals
Launch Film Bridge Fund allows investors to participate in short-term, high-interest loans for film production financing. These loans have robust legal protections and the potential for high returns.
⚙️ Deal Basics
- Investment Size: $5,000,000
- Minimum Investment: $20,000
- Potential IRR: 20% to 40% (depending on performance and share class)
- Deal Type: Debt (Bridge Loans)
- Deal Duration: 5 years
- Recent Performance: View
📝 Deal Overview
The Launch Film Bridge Fund presents a unique investment opportunity in the film financing sector. The fund provides short-term bridge loans to carefully vetted film projects, typically for 8-14 weeks, to cover critical early-stage production costs. With a focus on senior-secured positions, rapid turnaround times, and comprehensive legal protection, including completion guarantees, the fund aims to generate attractive returns while mitigating risks inherent in film production financing.
📝 Funding Status
Altea members have expressed $2 million worth of interest in this deal, smashing our previous records. We’ll make space for non-members if possible.
Real Estate
Bullish New
- Six Florida cities rank among the top 10 in the US for fastest-rising home prices.
- Fort Wayne, IN ranked No. 1 in the Realtor.com Housing Market Ranking, with Midwest cities claiming over half the list.
- Q2 leasing volume hit its highest level since the pandemic, driven by large transactions.
- Michigan Attorney General Dana Nessel signed Senate Bill 602 into law, increasing protections for homeowners and penalizing brokers in void agreements.
- Delinquency rates for commercial property loans slightly declined in Q2 2024, with 97% of loan balances current or less than 30 days late.
- Austin is the best place for renters according to Realtor.com, with a rent-to-income ratio of about 20% and rents falling over 12% YoY in June.
Bearish News
- Dallas housing market saw an 11.57% YoY sales decrease in June 2024; inventory rose from 2.5 to 3.8 months.
- Existing-home sales fell 5.4% in June to 3.89 million units; condo and co-op sales dropped 7.5%.
- Grant Cardone predicted a massive real estate correction in the next 12 months, with home prices dropping 20-30%.
- Over 30 lawsuits allege companies like RealPage and Yardi enabled rent price collusion, creating an affordability crisis.
- Houston’s average rental prices hit a record $2,373 in June, a 1.3% YoY increase, with affordability conditions the worst on record.
- In over 200 US cities, typical starter homes now cost $1 million or more, up from 84 cities five years ago.
How to invest in real estate right now:
Get in the car, kids; we’re moving to Fort Wayne.
Startups
Bullish News
- Nvidia acquired Israeli startups Mellanox for $6.9 billion, Deci for $300 million, and Runfor for $700 million.
- DoorDash partnered with Save-A-Lot for on-demand grocery delivery at 400+ stores.
- Britain’s AI startups raised $2.1 billion in the first half of 2024, accounting for 22% of VC investment.
- Three Purdue startups, including Covert Defenses, took 1st place at the Indianapolis Innovation Showcase.
- Stripe acquired competitor Lemon Squeezy, which surpassed $1 million ARR nine months after launch in 2021.
- ISS Research and Development Conference announced it will focus on startups’ role in the space ecosystem, awarding $10 million to 30+ research projects.
- Michigan’s startup ecosystem secured nearly $500 million from four major VC firms in 2023.
Bearish News
- Google’s $23 billion deal to acquire Israeli cybersecurity startup Wiz fell apart due to antitrust concerns.
- Reddit has blocked major search engines from surfacing recent posts unless they pay, except Google due to a $60 million deal.
- Cameo, once valued at $1 billion, is now so broke it can’t pay a $600,000 FTC fine for endorsement rule violations.
- US security agencies warned startups of foreign VC investments aimed at stealing secrets.
- A scammer drained $671 from an Aurora woman’s Chime banking app account; Chime initially denied her fraud claim.
How to invest in startups right now:
Getting acquired by Stripe sounds easy-peasy.
Private Equity and Private Credit
Bullish News
- Florida SBA announced the exploration of CFOs and NAV loans as cost-effective alternatives to selling in secondaries.
- One Equity Partners (OEP) signed an agreement to make a majority investment in Comau for growth in diversified sectors.
- LBO activity slowed in Q2 2024, but high demand signals potential; H1 purchase price multiples averaged 11x.
- Mubadala Capital announced an agreement with Bain Capital to acquire a majority stake in Bugaboo Group to expand into growth markets.
- Instructure agreed to be acquired by KKR for $4.8 billion, with support for tech and innovation investment.
- Soleus Capital aims to raise $250 million -$300 million for its first credit fund, focusing on senior secured loans.
Bearish News
- Congresswoman Jayapal and Senator Markey introduced the Health Over Wealth Act, setting guardrails for PE in healthcare.
- Texas’ largest public pension fund pulled almost $10 billion from PE, cutting its target allocation to 12%.
- Imaging saw one of the greatest two-year declines in PE deals as investors avoided out-of-network strategies.
- A PitchBook report suggests PE’s role in healthcare is overstated, with PE-backed providers at 3.3% of US healthcare spending.
- The global M&A market’s big-deal momentum is slowing as interest rates remain high in 2024.
- Investors are snubbing new PE initiatives, preferring to cash in as firms use financial engineering for underperforming investments.
How to invest in PE and Private Credit right now:
Gotta hand it to Jayapal and Markey, that’s a pretty nice name for some legislation.
Crypto
Bullish News
- Former President Donald Trump pledged to fire SEC Chair Gary Gensler and appoint crypto-friendly regulators.
- The SEC approved 9 spot ETH ETFs, driving $17 billion in net inflows to Bitcoin ETFs, mostly powered by Coinbase.
- Dogecoin’s price “broke out” to its highest monthly level, with open interest up 19%.
- The Reserve Bank of India is set to launch its digital rupee CBDC to enable faster payments and cheaper global transfers.
- The crypto VC market rebounded in Q1 2024, raising $2.01 billion and nearly doubling startup valuations to $37 million.
- Coinbase co-founders Armstrong and Ehrsam donated $6,600 each to J.D. Vance’s 2028 campaign.
- Ethereum co-founder Buterin introduced Circle STARKs to enhance blockchain security and efficiency with faster-proving speeds.
- Superstate launched the Crypto Carry Fund (USCC), aiming for higher yields than short-term treasuries.
Bearish News
- WazirX halted trading and announced a $23 million bounty after hackers stole $234 million, suspected to be the North Korean “Lazarus” group.
- Grayscale’s $9 billion head start in Ethereum was at risk as investors launched ETFs, causing outflows of nearly $18.7 billion for its Bitcoin trust after converting from a trust to an ETF.
- The SEC’s fight against Ethereum and Consensys may continue, with Gary Gensler possibly remaining as a commissioner if Trump is elected.
How to invest in Crypto right now:
All eyes on Gary.
NFTs
Bullish News
- NFT sales volume surged past $107 million, with Ethereum at $36.6 million and Solana at $26.15 million.
- The automotive blockchain sector is expected to top $5.61 billion by 2030, driven by luxury brands like Porsche, Lamborghini, and Rolls-Royce.
- APENFT (NFT) traded $16.67 million on exchanges in a 24-hour period.
- Solana ecosystem saw over 1.3 million active wallet interactions, a 36% increase, leading in NFT trading royalties with a 60% market dominance.
- UFC champion Alex ‘Poatan’ Pereira partnered with BlockDAG, raising over $61 million in presale.
- MOONHOP partnered with Coinsult for security as its presale nears $1 million, with stage 1 raising over $995,000.
Bearish News
- Bored Ape Yacht Club NFT values have dropped over 90% since May 2022.
- eBay’s KnownOrigin announced it will be shutting down its on-chain marketplaces and minter after a 30% staff layoff in February.
- Epic Games CEO Tim Sweeney clarified Fortnite will not involve cryptocurrencies or NFTs, despite future blockchain considerations.
- Meta is set to cut Reality Labs’ budget by 20% through 2026 after posting a $3.8 billion Q1 2024 loss and losing $55 billion since 2019.
How to invest in NFTs right now:
The Metaverse is starting to feel like a bad dream.
Artwork
Bullish News
- Kings Auctions announced the auctioning of 76 original artworks by Michael Jackson, including drawings of Marilyn Monroe and Michelangelo’s David.
- The US Justice Department recovered a $1.2 million Picasso drawing bought with embezzled 1MDB funds.
- Germany moved to ease the return of Nazi-looted art, with many works still unreturned 80 years after Hitler’s regime.
- The Vatican announced the installation of new bullet-proof glass in front of Michelangelo’s “Pietà” in St. Peter’s Basilica.
- Sunrise Senior Living residents in Chesterfield, Missouri, created art to raise $1,000 for the Alzheimer’s Association.
- UCLA’s Fowler Museum returned 20 cultural objects to the Warumungu community of Australia’s Northern Territory.
- Contemporary art gallery Hauser & Wirth expanded in Hong Kong, relocating to larger street-level premises in Central.
- The Hillsborough County Arts Council in Florida awarded $30,000 to local artists through its Professional Development for Artists Grant Program.
Bearish News
- A Texas city council stripped $30,000 in funding from an arts center over a drag show.
- Houston cut public art funding from $25 million to $15 million to help reduce a $187 million budget deficit.
- Two Just Stop Oil activists were found guilty of criminal damage for throwing soup on Van Gogh’s Sunflowers painting.
- A jury ruled that convicted racketeering boss, Michael Miske, must forfeit $20-28 million in assets, including artwork, to the government.
- The IRS increased the value of artist Faiya Fredman’s artwork to $957,300, levying $312,600 in additional taxes and $146,000 in penalties.
How to invest in Artwork right now:
Looking for soup-proof glass next.
Vintage Autos
Bullish News
- Mecum Auctions’ Harrisburg event will feature about 1,200 cars, with last year’s auction reaching $34.2 million in sales.
- 60% of Gen Z express interest in owning a classic car compared to 31% of Baby Boomers.
- A rare 1972 Chevrolet Suburban C20, one of only 2,136 made, is up for auction on Bring a Trailer.
- A 1963 Shelby Cobra, CSX2161, driven regularly by Steve McQueen will be offered at the Monterey Car Week sale.
- A Lamborghini Miura, chassis number 4614 is going up for auction with an estimated $2,000,000 to $2,500,000.
Bearish News
- A millionaire’s abandoned classic car collection is up for sale for $1 million in a graveyard-like state.
- A woman dubbed the “Gucci Goddess” stole $109 million from the Army and bought 82 luxury cars.
- Three wholesale auto dealers had their licenses revoked for rolling back odometers and falsifying title documents.
- Four suspects were charged with a luxury car theft ring in Union County.
How to invest in Vintage Autos right now:
Gen Z, welcome to the vintage car market.
Rare Coins
Bullish News
- The American Numismatic Association’s (ANA) largest coin show in August will feature a $3 million nickel and other valuable coins.
- Bullion Shark has quickly become one of the most heavily trafficked coin dealers in the US.
- Lear Capital acquired an extremely rare 1879 $4 Stella gold coin, now available for $172,500.
- Stack’s Bowers is offering a Fr. 1167 1907 $10 Gold Certificate with a low serial number of A44 in their August 2024 auction.
- A TikTok coin collector discovered a pouch of rare coins worth over $10,000 using a metal detector.
- A rare Gibraltar 50p coin with a mismatched date error sold for £4,500 at the Britannia Coin Company.
- Archaeologists in Egypt discovered ancient burials, bronze coins, and gold foil figurines dating back to 688 B.C.
- A Nobel Peace Prize, 22ct gold commemorative medallion sold for over £20,000 at a Shrewsbury auction.
Bearish News
- The FBI warned of a rise in scams involving collectible coins, with victims losing over $9 million.
- Concerns were raised over proposed legislation for a 2026 commemorative coin program recognizing the US as a host for the FIFA World Cup.
How to invest in Rare Coins right now:
I should stop making fun of mental detectorists.
Farmland
Bullish News
- Seattle startup Terrantic raised a $3.5 million seed round to develop AI software that helps food growers improve quality.
- Farmland LP’s Fund III acquired three properties totaling 2,625 acres in Northern California’s Sacramento Delta for $35.6 million.
- Officials approved a $14.9 million decommissioning bond from DTE Energy, bringing a solar farm to Michigan.
- John Deere’s See & Spray artificial intelligence technology in weed management was showcased at Kansas State University.
- USDA Rural Development invested $806,660 in 27 clean energy projects across Iowa.
- Agrobee advanced the development of new VTOL drones capable of carrying up to 900 liters of pesticides.
Bearish News
- Farmland valuations in Kern County, California dropped up to 47.6% in the first half of 2024.
- Iowa farmland values declined 2.4% over the past six and 12 months, the first drop in five years.
- Two Oklahoma con artists stole $1 million from farmers across multiple states in a Ponzi scheme.
- John Deere laid off a significant number of salaried employees as part of ongoing workforce reductions.
- Kraft Heinz’s Muscatine, Iowa facility discharged over 1 million gallons of untreated wastewater daily for over two years.
How to invest in Farmland right now:
We got pesticide drones before GTA 6.
Luxury Goods
Bullish News
- Breitling opened a temporary flagship store on the Champs-Elysées in Paris.
- LVMH recorded revenue of €41.7 billion in the first half of 2024.
- The global luxury goods market is expected to reach $699.77 billion by 2033, growing at a CAGR of 6.70%.
Bearish News
- Luxury brands have begun lowering prices to win back middle-income shoppers who account for over half of all luxury purchases.
- Shop owners in Wales are taking security measures as shoplifting rises by 34%.
- Kering reported a bigger-than-expected 11% drop in Q2 sales and forecast a weak second half, with Gucci sales falling 19%.
How to invest in Luxury Goods right now:
Time to break out the coupon codes.
Wine, Tequila, and other Spirits
Bullish News
- Diageo’s United Spirits invested $273,570 and a $50 million stake in domestic start-ups V9 Beverages and Indie Brews and Spirits, respectively.
- Pennsylvania’s governor amended the Liquor Code, opening up the fastest-growing spirits category with $2.8 billion in sales for grocers.
- Southern Glazer’s Wine & Spirits agreed to acquire Horizon Beverage Group, boosting its US state presence to 47.
- Some wineries are turning to artificial intelligence to better prepare for unpredictable weather patterns.
Bearish News
- Malt scotch saw volume declines across all price tiers for the first time since 2000 in China’s beverage alcohol market.
- Americans consumed less beer in 2023 than they had in a generation, and wine sales shrank for the third consecutive year.
- The City of London Police reported that in 2023, 89 reports were made to Action Fraud about alcohol investment scams with losses totaling more than $3.8 million.
- Spirits sales in Great Britain’s on-trade dropped by 14.3% in the three months leading to mid-May.
- LVMH’s champagne and wine sales declined 12% in the first half of 2024 compared to last year.
How to invest in Wine and Spirits right now:
I knew I was born in the wrong generation.
Music and Film
Bullish News
- The global music streaming market is forecasted to reach a multimillion-dollar valuation by 2032.
- The Kansas Arts Commission awarded $1,295,450 to 108 recipients in the latest round of grant funding.
- Twisters delivered the best opening weekend box office numbers of 2024 for the multisensory 4DX premium format, grossing over $2.3 million.
- Sony Pictures Entertainment elevated Drew Shearer to chief financial officer.
- Music rights investment platform JKBX hit the market in March, allowing individuals to purchase shares in streaming royalties with yields up to 9.66%.
- Ticketmaster is acquiring Quicket, a major player in Africa’s General Admission event and festival ticketing.
Bearish News
- FilmAI.tech offered a catalog of 6,000 Hollywood films for AI scanning, with penalties reaching up to $150,000 per infringement.
- Regal-owner Cineworld has planned to close six movie theaters and cut jobs as part of a UK restructuring following theater shutdowns.
- AMC Theatres reached an agreement to restructure a portion of its $4.5 billion debt.
- Universal Music Group’s stock plunged 23% after sluggish results for its streaming and subscription businesses.
How to invest in Music and Film right now:
When was the last time you went to the theater?
Metals and Gems
Bullish News
- The jewelry market size in India is estimated to grow by $21.54 billion from 2023-2027 at a CAGR of 5.54%.
- American Titanium Metals is investing $867 million in a new manufacturing facility in Fayetteville, NC, with new salaries over $120,000.
- The industrial metals sector was the strongest in Q2 2024, with total returns of around 9% and copper increasing 10%.
- The global metal and metal oxide nanoparticle market size is anticipated to be valued at $36.34 billion in 2024.
Bearish News
- The FBI warned of new gold scams involving impersonating government officials, with over $55 million in losses reported.
- Gold prices slipped to a two-week low as profit-taking kicked in, with spot gold falling 1.8% to $2,355.22 per ounce.
- Copper prices fell below $9,000 a ton for the first time since early April, dropping about 20% since its mid-May record high.
- Radius Steel and two company leaders were charged with 10 environmental crimes, facing up to $33 million in fines and potential jail time.
How to invest in Metals and Gems right now:
Time to consider relocating to Fayetteville.
Collectibles
Bullish News
- Indiana Jones’ fedora from “Temple of Doom” is expected to fetch up to $500,000 at auction next month.
- Kartoon Studios, VeVe, and Multiverse Clothing Company Inc. launched the first-ever line of Stan Lee limited-edition ‘phygital’ collections.
- Pierre de Coubertin’s Olympic Games Manifesto sold for $8.8 million.
- The Sports Trading Cards market is estimated at around $14.9 billion in 2024.
- The United States Postal Service released new Forever stamps honoring celebrities Alex Trebek, Hank Aaron, and the 50th anniversary of Dungeons & Dragons.
Bearish News
- The University of Delaware’s Poison Book Project discovered toxic pigments in Victorian-era books, with 300 books containing arsenic.
- Graceland executives alleged that some Elvis Presley collectibles recently sold at auction could be fake.
- Austin game stores were targeted by burglars who stole trading card games worth up to $150 per box.
How to invest in Collectibles right now:
I’m not sure whats worse, a $500,000 fedora, or the word “phygital.”
Websites and Domains
Bullish News
- VeriSign reported a 4.1% increase in revenue and growth in operating income and EPS, despite a 1.8 million decrease in its domain name base.
- Sedo reported 13 end-user domain name sales, with FitFast.com selling for $28,333.
- Efty launched Efty Pay, a domain sales payment platform for subscribers to use with a 3.5% introductory commission rate.
- Gname has about 1.2 million more .com domains than a year ago.
- The Rhode Island General Treasurer’s Office changed its unclaimed property website to FindRIMoney.gov to assure residents.
- The global satellite internet market size is estimated to Bearish News
- A study by the Data Provenance Initiative found that 25% of high-quality data in three major AI datasets are now restricted.
- Cybercriminals launched over 40 deceptive websites within a day of the CrowdStrike incident.
- Industry pros criticized Amazon’s plan for a direct-from-China section.
How to invest in Websites and Domains right now:
Avoiding scams has become a full-time job at this point.
That’s all for this week
Cheers,
Wyatt
Disclosures
- We hold BTC, ETH, and a couple Star Wars Action figures in our ALTS 1 Fund.
- There are a couple of affiliate links above. If you click them, we may get a couple of bucks.
