Hello and welcome to Alts Cafe
Highlights from the full issue:
- Macro: US inflation rate was 3.3% leading up to May 2024
- Real Estate: Flyhomes acquired ZeroDown’s technology
- Startups: French AI startup Mistral AI raised €595 million
- Private Credit: PE firms amassed $1 trillion in ‘carry’ fees
- Crypto: Robinhood announced plans to buy Bitstamp
- NFTs: NFT sales decreased by more than 6%
- Art: A Georgia O’Keeffe sold for $13.5 million
- Vintage Autos: A Lamborghini broke online auction records
- Coins: A hiker found 2,150 medieval silver coins in Prague
- Farmland: Southeast farmland values grew 20% since 2021
- Luxury: Porsche is the world’s most valuable luxury brand
- Wine, Tequila, and Spirits: UK spirits market declined by 5%
- Film & Music: “Swiftonomics” has made Taylor over $1 billion
- Precious Metals: Gold price hit a new record high in late May
- Collectibles: Rick Ross is auctioning off 800 of his collectibles
- Websites: Over 350,000 .ae domains were registered by 2024
Let’s go.
Wyatt
Table of Contents
Macro View
Bullish News
- Bureau of Labor Statistics announced US inflation rate was 3.3% for the 12 months leading up to May 2024.
- Federal Reserve officials estimated just one interest rate cut this year, down from three.
- The S&P 500 and Nasdaq reached record highs last week despite investor warnings.
- China’s steady inflation and easing producer price declined in May, suggesting more stimulus was needed.
- Swiss voters backed a renewable energy law, set to take effect next year.
- Kreston Global’s report shows small and medium businesses are bullish about global operations.
Bearish News
- US jobless claims hit a 10-month high, indicating a cooling labor market.
- Credit card delinquencies rose to 10.7% in 2024, up from 8.2% a year ago.
- US macro data was weaker than expected, with lower PPI and higher jobless claims.
- High honey bee colony mortality from climate change and land use changes has threatened agricultural stability and economic health.
- The Vanguard Total Stock Market Index Fund ETF dipped 6.3% in April due to monetary policy uncertainty.
- Prestige beauty sales surged in Q1 2024, signaling economic uncertainty as consumers turn to affordable luxuries.
- Economic uncertainty in 2024 have disrupted energy markets, increasing the need for advanced risk management.
What are the odds?
Kashi is showing a near certainty that the US will get a rate cut by November.
Get $25 to play around with using this link.
What are we doing?
Altea Highlights
Check out the full roundup.
Real Estate
Bullish News
- Blackstone finalized a deal to expand its global headquarters by 30%.
- Los Angeles’ housing market defied expectations, with the median home price reaching an all-time high of $904,210 in April.
- Flyhomes acquired ZeroDown’s technology, expanding its AI-powered home search platform to 28 states.
- Austin homes have seen a remarkable increase in value of 123.20% over the past ten years.
- Seattle’s median home price reached $997,900, a nearly 13% increase compared to last year.
Bearish News
- Nearly 4 out of 5 Americans agree the country is in a housing affordability crisis. [Ed: the other 20% are landlords]
- California’s insurance crisis devastated the real estate market, stalling affordable housing developments, and leaving 42,000 apartment owners without coverage.
- Houston home sales declined in May, with condo and townhome sales down 10%.
- A Dallas pastor received over 30 years for stealing church properties worth over $800,000.
- A NYC office building owned by a Related Cos. affiliate will be sold at a 67% discount.
- A study found that 25% of young residents plan to leave Greater Boston in the next five years, despite 90% not wanting to.
How to invest in real estate right now:
Who’s not moving to Austin these days?
Startups
Bullish News
- DoorDash expanded US liquor stores on its platform and announced new alcohol delivery partnerships.
- French AI startup Mistral AI raised €595 million in a Series B round.
- Capchase expanded its services to Ireland, bringing non-dilutive financing to SaaS startups in the region.
- Hugging Face agreed to acquire AI startup Argilla for $10 million.
- The Italian Founders Fund raised over $53.8 million to invest in the next generation of Italian startups.
- Healthcare AI startup Regard closed a $30 million Series B round led by Oak HC/FT.
- Hotel guest management platform Canary Technologies raised $50 million in a Series C round.
Bearish News
- DC startups have a 32.2% first-year failure rate, the highest in the nation, compared to 23.2% nationally.
- Seattle fell 10 spots in Startup Genome’s annual “Global Startup Ecosystem Report.”
- Pure Storage confirmed a third party hacked a Snowflake data analytics workspace containing telemetry information.
- Rivian cut less than 1% of its 8,000 salaried positions as part of cost-cutting efforts.
- Palantir Technologies Inc. closed at $23.77, marking a 0.34% decline.
- The founder of Joonko Diversity Inc. was charged with defrauding investors on Tuesday.
How to invest in startups right now:
France and Italy are having their moment.
Private Equity and Private Credit
Bullish News
- California’s CalCompetes program reached $50 billion in private investment.
- Goldman Sachs plans to double lending to wealthy private bank clients over the next five years.
- The largest PE firms earned more than $1 trillion in carried interest pay since 2000.
- 71% of family offices plan to maintain or increase direct investments in private companies in 2024.
- The Big 12 is considering a $1 billion PE investment from CVC Capital Partners.
- Guggenheim Investments closed a $1.2 billion levered PC vehicle.
- The State of Wisconsin Investment Board made $1.6 billion in alternative commitments.
Bearish News
- Proposed legislation in California would prevent PE firms from interfering with medical decision-making at acquired physician practices.
- The SEC charged an investment firm with defrauding investors of at least $3 million.
- Van Eck Associates Corporation reduced its stake in Silver Lake Resources Limited.
- The SEC failed to regulate the PE market after a New Orleans federal court struck down proposed regulations.
How to invest in PE and Private Credit right now:
PE continues to make its way out of the medical field.
Crypto
Bullish News
- Ripple launched a Japan and Korea fund to drive blockchain innovation.
- Crypto.com received approval to register as a virtual asset service provider in Ireland.
- Robinhood Markets Inc. announced plans to buy Bitstamp for $200 million in cash.
- A Change.org petition for a Shiba Inu (SHIB) ETF has surpassed 10,500 signatures.
- Taiwan’s cryptocurrency sector established an industry association with 24 registered firms.
- Rollblock raised over $720,000 in its third presale stage, projected to surpass $1 million.
Bearish News
- Elliptic’s report warns that AI is being exploited for crypto scams.
- Terraform Labs agreed to pay a $4.47 billion penalty to settle the SEC fraud case.
- The UwU Lend crypto platform suffered a sophisticated attack, with $20 million stolen.
- Bitcoin Cash price fell to a 25-day low of $447 on June 12th.
- Cardano founder Charles Hoskinson expressed disappointment over Elon Musk’s lack of collaboration.
- Loopring suffered a $5 million hack after a compromised two-factor authentication service.
How to invest in Crypto right now:
Musk doesn’t seem to be much of a “collaborator”.
NFTs
Bullish News
- The Bitcoin network led NFT sales with a 50.33% rise last week.
- NFL Rivals broke $6 million in lifetime NFT trading volume.
- The International Trademark Association argued that NFTs are “goods” subject to the Lanham Act.
- South Korea’s financial regulators introduced new guidelines for NFTs in preparation for the Virtual Asset User Protection Act, effective July 19.
- OKX announced that Slerf NFTs will be available exclusively for minting.
- Pleasr announced plans to sell encrypted copies of Wu-Tang Clan’s “Once Upon a Time in Shaolin” album via $1 NFTs.
- Binance unveiled the final phase of its ‘Forever Worldwide: The Road to Saudi Arabia’ NFT collection.
Bearish News
- Three UK nationals were charged with wire fraud and money laundering for a $2.7 million “rug pull” scam involving Evolved Apes NFTs.
- NFT sales decreased by more than 6% in the first five months of this year compared to the same time last year.
- South Korea enacted the Korean Virtual Asset User Protection Act, imposing strict rules on NFTs treated as virtual assets.
- The number of daily Ethereum NFT traders fell below 4,000 for the first time since June 2021.
- AI in cryptocurrency has increased fraud and scams, making it harder for investors to identify legitimate opportunities.
How to invest in NFTs right now:
Who’s excited to mint the slerf?
Artwork
Bullish News
- A real photograph by Miles Astray won multiple AI art prizes at the 1839 Awards before being disqualified.
- Ernst Ludwig Kirchner’s long-lost “degenerate art” painting sold for $7.5 million.
- Art Basel 2024 opened with mega-galleries leading sales, including a $20 million Joan Mitchell painting.
- Hauser & Wirth sold Georgia O’Keeffe’s Sky with Moon (1966) for $13.5 million.
- A woman who bought a $125 painting on Facebook Marketplace discovered it could be worth up to $200,000.
- A coveted painting by Renaissance master Titian, stolen twice, is expected to fetch £15-25 million at Christie’s.
Bearish News
- A woman sued MoMA’s Design Store after a $200 glass pot allegedly exploded.
- The New York Times has planned to remove a public art installation from its lobby after 17 years, and there are no current plans to install it elsewhere.
- The Minnesota State Fair ended its Commemorative Art program after 20 years.
- Sales of emerging artists’ works have hit a downcycle, with Allison Zuckerman’s painting falling from $200,000 to $20,000.
How to invest in Artwork right now:
A $200 exploding pot sounds like a deal to me.
Vintage Autos
Bullish News
- A 2015 Lamborghini broke online auction records with a $6 million sale.
- Queen Elizabeth II’s 1950 Rolls-Royce Phantom IV State Landaulette is set to be sold at auction for up to £2 million.
- A 1958 Mercedes-Benz 300 SL Roadster is set to be a highlight at RM Sotheby’s Cliveden House Auction.
- Pink Floyd drummer and his wife opened their garden to the public, including his £50 million car collection.
Bearish News
- A stolen 1987 Buick Grand National, valued at $150,000, was wrecked during a joyride in Boston, damaging over a dozen vehicles.
- Passenger vehicle sales in India slumped in May 2024, falling 0.96% year-over-year.
- A 1975 Chevrolet Corvette burst into flames in Lafayette, Louisiana, due to a fuel leak.
How to invest in Vintage Autos right now:
Pro tip: If you smell leaking fuel, you may be leaking fuel.
Rare Coins
Bullish News
- Construction workers in Germany unearthed a hoard of bullion likely belonging to one of Wettin’s richest 17th-century citizens.
- The Trevor Wilkin Collection of Siege Notes fetched a hammer price of £96,455 at the Noonan Mayfair auction.
- A hiker discovered a hoard of over 2,150 medieval silver coins minted in Prague.
- An important Islamic gold coin from the 1st century of the Hijra, sold for £168,000 at Morton & Eden’s June 12 auction.
- A 1794 Liberty Cap cent stolen by Dr. William H. Sheldon from the ANS was sold for $10,200 at Heritage Auctions.
- The US Mint will debut the 2024 Proof Morgan and Peace silver dollars from Sept. 11-14, 2024.
Bearish News
- A TikTok coin collector warned that a common 2020 Brexit 50p coin listed for £25,000 online is likely a scam.
- The creator of Queen Elizabeth II”s portrait adorned with Canadian coins sued a Vancouver dealer for alleged theft and damage to her works.
How to invest in Rare Coins right now:
Trip to Prague, anyone?
Farmland
Bullish News
- Bill Gates owns roughly 270,000 acres of US farmland, which saw a 10.2% value increase in 2022.
- The Scottish farmland market experienced an unexpected early surge, with acres advertised for sale 64% higher than in 2023.
- Southeast farmland values climbed 20% since 2021 in Alabama, Florida, Georgia, and South Carolina.
- The Michigan Department of Agriculture and Rural Development awarded 24 grants totaling over $7.2 million.
- Sierra Leone registered the agricultural sector’s highest contribution to Africa’s GDP between 2020 and 2022 at over 60%.
- Loudoun County supervisors Bearish News
- Ohio lost 931,089 acres of farmland between 2002 and 2022.
- Investigations revealed widespread suffering on 45 RSPCA Assured farms, leading to plummeting consumer trust.
- European farmers staged over 4,000 protests this year, a 300% increase, potentially swaying EU parliamentary elections.
- The Idaho Department of Water Resources issued a water curtailment on 500,000 acres of farmland.
- Conagra Brands Inc. stock arrested for DWI and suspended.
How to invest in Farmland right now:
I’m not feeling very assured about Assured Farms.
Luxury Goods
Bullish News
- Porsche retained its position as the world’s most valuable Luxury & Premium brand for the seventh consecutive year.
- LVMH entered a partnership with Accor to further develop the Orient Express brand.
- Chanel reported 16% sales growth last year to nearly $20 billion.
- Watches of Switzerland reported its buyer demographics now include more women and young people.
- Polo Ralph Lauren’s revenue amounted to $6.63 billion in the financial year that ended April 2024.
Bearish News
- Luxury sales are falling in the double digits at Chinese malls with Gucci, Burberry, and Salvatore Ferragamo seeing significant declines.
- An Italian subsidiary of LVMH was placed under court administration for one year over alleged labor exploitation.
- Salvatore Ferragamo’s share price is 56% lower after five years as earnings and shareholder returns continue a downward trend.
- Two Russian-born US citizens were charged with smuggling $500,000 worth of luxury goods to Russia.
- The wife of former Malaysian prime minister Najib Razak was accused of using $346 million from the 1MDB state fund to buy luxury goods.
How to invest in Luxury Goods right now:
There really is no substitute for a Porsche.
Wine, Tequila, and other Spirits
Bullish News
- Agave spirits continue to rise in US beverage alcohol sales in 2023, with premium and above price tiers increasing by 8%.
- The 30th Annual Manhattan Wine Auction raised nearly $1.4 million for Manhattan Beach public schools.
- Sotheby’s is holding the first-ever auction dedicated exclusively to Champagne.
- The global white wine market reached nearly $40.2 billion in 2023 and is expected to grow at a rate of 5.6%.
- The New York State Legislature passed a bill that will allow certain members to safely ship distillery and cider products to adult consumers.
Bearish News
- French spirits exports dropped sharply in 2023, with total exports falling 13% in volume and 12% in value to 4.8 billion euros.
- The UK spirits market 24.7% decrease in wine consumption in 2023 compared to 2022.
- Napa Valley’s vineyards and wineries are threatened by pollution from a nearby landfill.
- Wine fraudster Omar Khan was sentenced to two years in federal prison for his role in a $7 million scheme.
How to invest in Wine and Spirits right now:
I noticed notes of trash and smokey garbage undertones.
Music and Film
Bullish News
- KEF opened a new flagship Music Gallery in the heart of London.
- Alternative rock band Spin Doctors partnered with Primary Wave Music on music publishing and artist royalties.
- The Global Optical Films Market reached $27.8 billion in 2023 and is anticipated to reach $68.7 billion by 2033.
- Taylor Swift’s “Swiftonomics” strategy has boosted her wealth to over $1 billion, maximizing the music industry’s earnings as well.
- The Zacks Film and Television Production and Distribution industry has witnessed a surge in demand due to operational constraints faced by movie theaters.
Bearish News
- The French music video “Étoile Filante,” produced using AI, was booed by the audience at the Annecy Animation Festival.
- The NMPA filed a legal complaint against Spotify over its plan to bundle music and audiobooks.
- Paramount Global’s co-CEOs remain focused on cost-cutting as former CEO Bob Bakish was fired on April 30.
How to invest in Music and Film right now:
Will Swiftonomics be on the exam?
Metals and Gems
Bullish News
- The price of gold hit a new record high in late May, with prices up 13.5% through early June.
- Metals Focus forecasts that gold will average $2,250 per ounce in 2024.
- Critical Metals Corp. agreed to buy up to 92.5% of the equity in Tanbreez for $211 million.
- Mining firm Rare Earths Norway discovered Europe’s largest proven deposit of highly prized rare earth elements.
- A research team at PNNL and NCSU created a tool to predict oxidation-resistant complex metal alloys.
- UK startup Materials Nexus developed a rare earth-free magnet for EVs using a machine-learning algorithm.
- Sotheby’s recent Magnificent Jewels auction in New York raked in a staggering $30 million.
Bearish News
- Signet Jewelers’ revenue dropped 9% year on year to $1.51 billion in the 13 weeks ending May 4.
- China halted its 18-month gold buying spree, causing precious metal prices to stumble.
- The US imposed sanctions on Guyanese mining magnate Nazar Mohamed and his son over alleged fraud.
- Thieves in LA are targeting catalytic converters, copper wires, statues, and more to extract metals for resale.
- The Douglas County Sheriff’s Office sounded the alarm about “gold bar scams” up to $429,000 targeting elderly residents.
How to invest in Metals and Gems right now:
Hey thieves, my upstairs neighbor’s tap shoes have some metal you may be interested in.
Collectibles
Bullish News
- Fanatics and Sotheby’s partnered to offer collectors access to trading cards valued at $100,000 and above.
- Just Press Play owner Zac Gieg announced plans to open a 22,000-square-foot mega store in Lancaster, PA in early 2025.
- Upper Deck announced several new sets of collectible cards featuring DC superheroes and villains.
- “Bond King” Bill Gross amassed a rare US stamp collection that could set a record at auction, with expectations of fetching $20 million.
- The National Videogame Museum in Frisco, Texas opened a Pokemon exhibit in collaboration with YouTuber Leonhart and Rare Candy.
- Rick Ross is auctioning off more than 800 of his prized collectibles to raise funds for charity.
Bearish News
- Gamestop’s shareholder meeting ran into a technical problem, preventing many investors from logging on.
- A gold nugget worth $82,000 was stolen from a collectibles show in Long Beach on the first day.
How to invest in Collectibles right now:
I take back every time I mocked a stamp collector.
Websites and Domains
Bullish News
- The global online travel market size reached just under $600 billion in 2023 and is expected to exceed $800 billion by 2028.
- Over 350,000 .ae domains were registered by 2024.
- WordPress.com introduced a new unified dashboard for managing sites and domains.
- ICANN data showed GoDaddy remains the top registrar with 55,492,984 .com registrations as of February 2024.
Bearish News
- A new analysis found that websites need over 1,000 backlinks to rank in Google’s top 10 search results.
- Tesla lost a cybersquatting claim against the owner of TeslaShop.com.
- GitHub users are being targeted by a 4-month phishing and extortion campaign.
- The New York Times had 270GB of source code stolen from its GitHub repositories in January 2024.
- The newly registered scam website Infinity-pay.fun, engages in deceptive activities to defraud individuals.
- Nigerian police arrested three suspects for the proliferation of fake websites.
How to invest in Websites and Domains right now:
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.