May 22, 2025
4
min read
💬 Daily Observation
"The tide hasn't gone out." — Howard Marks
In markets, calm can be misleading. It's only when the water pulls back that the vulnerabilities show.
As 2025 unfolds, Howard Marks' words feel timely. Many companies took on low-cost debt in the era of near-zero rates. Now, with interest rates higher, those debts are maturing—and refinancing could look very different.
That doesn’t mean we’ll see a wave of failures. But it does highlight the value of understanding how businesses manage through change, especially when credit becomes more expensive.
For investors, it’s a moment to stay curious—not about the noise, but about what’s quietly shifting underneath.
So grab your coffee, and let’s dive into today’s edition of Diversification Daily.
🗞️ Today's stories that matter (and why)
1. ₿ Bitcoin Hits Record High Above $110,000 Amid Institutional Interest
Bitcoin surged to an a new record high above $111,000, driven by growing optimism around US cryptocurrency regulation and increased institutional investment.
Why it matters: The surge in Bitcoin's price reflects increasing confidence in cryptocurrencies as alternative investments, potentially impacting traditional asset allocations.
Assets in focus: Alternatives
2. 📉 US Jobless Claims Fall to 227,000, Indicating Labor Market Stability
Initial jobless claims decreased by 2,000 to 227,000 for the week ending May 17, suggesting the economy maintained a steady pace of job growth in May.
Why it matters: A stable jobs market supports consumer confidence and spending, which in turn helps sustain GDP growth. It also reduces urgency for Fed rate cuts—impacting the trajectory of fixed income and monetary policy-sensitive assets.
Assets in focus: Fixed Income
3.🛢️ US Crude Oil Inventories Unexpectedly Rise by 1.3 Million Barrels
US commercial crude oil inventories increased by 1.3 million barrels, reaching 443.2 million barrels for the week ending May 16, 2025, according to the U.S. Energy Information Administration (EIA). This build surprised analysts who had anticipated a drawdown, leading to a decline in oil prices.
Why it matters: The unexpected increase in crude oil inventories suggests a potential oversupply in the market, which can exert downward pressure on oil prices and influence inflation expectations.
Assets in focus: Commodities
4. 🏘️ Millennials Face Challenges in Inheriting Baby Boomer Homes
As theBaby Boomer generation passes down millions of homes, many millennials face barriers likerenovation costs,maintenance needs, andinheritance taxes. Many properties are aging, and some are located in less-desirable areas.
Why it matters: This generational wealth transfer presents both opportunities and challenges for millennials, impacting the real estate market and financial planning strategies.
Assets in focus: Real Estate
5. 🔌 Analog Devices Exceeds Q2 Earnings Expectations
Semiconductor firmAnalog Devices posted$1.85 in adjusted EPS on $2.64B in revenue, beating Wall Street estimates. Management cited improving demand and margin expansion.
Why it matters: While not a mega-cap, strong results from Analog Devices reinforcesemiconductor sector resilience, an important bellwether for tech supply chains, AI infrastructure, and innovation-focused investors.
Assets in focus: Equities
🌀 Diversification Score – How Diversified Is Your Portfolio?
Analyze your portfolio's diversification and get recommendations to improve your risk-adjusted returns.
📊 Market Movements Snapshot
Asset Classes:
- 🟢 Commodities (Copper): YTD +16.91% – Copper is riding tariff headlines and robust EV demand.
- 🔴 Fixed Income (U.S. Treasuries 20 + yr): YTD -0.2% – The long-bond ETF TLT slips as investors demand richer yields for swelling deficits.
For the full list, click here
Sectors:
- 🟢 Energy: YTD +9,3% – Higher natural-gas prices and disciplined cap-ex keep sector total-returns in the lead.
- 🔴 Real Estate: YTD -4.5% – Elevated financing costs pressure property valuations; Bloomberg’s sector page shows the group lagging the S&P 500.
For the full list, click here
🤯 Alternative Investment Highlight: 🎨 Banksy's 'Crude Oil' Fetches £4.3M at Sotheby's, Surpassing Expectations
In a notable event in the art world, Banksy's reinterpretation of Jack Vettriano's The Singing Butler, titled Crude Oil (Vettriano), sold for £4.3 million ($5.4 million) at Sotheby's in London on March 4, 2025. The sale occurred just days after Vettriano's passing at the age of 73.
The artwork, previously owned by Blink-182 bassist Mark Hoppus, was acquired by him and his wife in 2011. Banksy's version adds a satirical twist to the original romantic beach scene by including figures in hazmat suits handling an oil drum, commenting on environmental issues.
This sale highlights the growing value of contemporary art that blends cultural commentary with celebrity provenance, underscoring the appeal of alternative assets to investors.
🧠 From the Education Center: Diversification, a Practical Guide
Diversification is powerful—but only when it’s done right. Learn how to spread risk smartly across assets, geographies, and time.
📤
Share with a Friend
Forward this email if Diversification Daily keeps your investing compass steady.
🚨Finally, One Dashboard for Everything
PortfolioPilot gives you a financial checkup—clear, simple, and actually useful.
- See how you score on diversification, risk, and fees with an AI-generated report card
- Understand your portfolio’s strengths and blind spots—no jargon, no fluff
- Get recommendations you can act on immediately, all personalized to you
Skip the confusion. Start with clarity → PortfolioPilot.com
See you tomorrow!
Fernanda de Francesco,
Editor, Diversification.com
©2025 diversification.com.
IMPORTANT DISCLOSURES: diversification.com is a technology product of Global Predictions Inc, a Registered Investment Advisor with the SEC. The information provided on diversification.com is for informational and educational purposes only. It should not be considered financial advice. Investment advisory services are only provided to investors who become Global Predictions clients. Past performance is not a guarantee of future results. Investing involves risk.
The content on this website, including market analysis, diversification scores, and other information, represents our observations of current market conditions and should not be interpreted as a recommendation to buy, sell, or hold any particular investment or security.
Past performance is not indicative of future results. All investments involve risk, including the possible loss of principal. Diversification does not guarantee a profit or protect against a loss in a declining market.
The diversification score and related analysis are based on a proprietary methodology that evaluates various aspects of portfolio composition. They should not be the sole basis for making investment decisions.
DATA SOURCES: Market data, asset class information, sector analysis, and other financial information displayed on this website are sourced from StockNewsAPI, Morningstar, AlphaVantage, IEX, and TradingEconomics. We make every effort to ensure data accuracy but cannot guarantee that all information is complete, accurate, or timely.
USER COUNT DISCLOSURE: References to "30,000 users/subscribers" reflect the combined user base across Global Predictions, PortfolioPilot.com, and diversification.com platforms as of February 15, 2025.
REGULATORY INFORMATION: For Global Predictions' Form ADV Part 2A and other regulatory disclosures, please visit portfoliopilot.com/disclosures.
FIDUCIARY ADVICE: Fiduciary financial advice is available through PortfolioPilot.com. The tools and calculators on diversification.com are for educational purposes and do not constitute personalized investment advice.
Before making any investment decisions, you should consult with a qualified financial advisor, tax professional, or legal counsel to ensure that your investment strategy aligns with your individual needs and circumstances.
Global Predictions Inc. and its affiliates, officers, directors, employees, and agents do not guarantee the accuracy, completeness, or timeliness of the information provided on this website and shall not be liable for any losses, damages, or costs that may arise from its use.
*For compliance reasons, these stories are complete fiction with made up characters and portfolios. Possibly influenced by real interactions, and definitely not financial advice."