June 06, 2025

💬 Daily Observation

“Someone’s sitting in the shade today because someone planted a tree a long time ago.” — Warren Buffett

It’s Friday, and after a week of headlines and trades, take a moment to plant your own seeds: review one small habit that can sound basic but many still forget (you wouldn’t believe how many clients skip this): automating a monthly savings transfer or spending ten minutes tonight reviewing your portfolio allocation and optimizations with PortfolioPilot.com. Trust that these consistent steps today can create shade for tomorrow.

☕️ So grab your coffee, and let’s finish (almost there!) this week informed with today’s fresh edition of Diversification Daily.

🗞️ Today's stories that matter (and why)

1. 🚨 Tesla drops 14% as Trump–Musk feud escalates

A public spat between President Trump and Elon Musk over the “One Big Beautiful Bill” led to Musk calling for Trump’s impeachment. Tesla shares fell 14%, wiping out over $150 billion in market value.

Why it matters: Tesla is one of the world’s most valuable companies and a key component of major indices. Political friction at the top can ripple through tech-heavy portfolios, especially when sentiment is already fragile.

Assets in focus: Equities

2. 🧘 Lululemon cuts 2025 outlook; shares plunge 22%

Despite a Q1 beat, Lululemon cut its full-year forecast due to rising inventory and tariff headwinds, including a paused 46% Vietnam import duty. Shares dropped 21%.

Why it matters: As a bellwether in consumer discretionary, Lululemon’s guidance cut signals broader retail-spending weakness and waning consumer confidence, putting pressure on discretionary sector valuations.

Assets in focus: Equities

3. 🏢 Office demolitions outpace new builds for first time in 25 years

CBRE reported that 23.3 million sq ft of US office space will be demolished or converted in 2025, outpacing the 12.7 million sq ft of new office construction—an inflection driven by persistent remote-work trends post-COVID despite slight upticks in occupancy. 

New York City leads conversions, with projects like 25 Water St., One Wall St., and 55 Broad set to deliver over 8,000 apartments from former office buildings, helping alleviate regional housing shortages.

Why it matters: A shift from underused offices to mixed-use or residential properties can stabilize commercial rents and create new real-estate opportunities, influencing REIT valuations and overall real-estate allocations for diversified portfolios.

Assets in focus: Real Estate

4. 🔥 Coal imports climb in China and India

Seaborne thermal coal imports in Asia reached 74.12 million metric tons in May 2025—a five-month high—up from 68.56 million tons in April, signaling early signs of rekindled demand despite a 7 % year-over-year decline in first-five-month imports. 

Chinese imports of Australian coal rose to 6.39 million tons in May, and India’s imports from Indonesia and Russia climbed amid seasonal power needs and competitive pricing, supporting the uptick.

Why it matters: A rebound in Asian thermal coal imports points to strengthening industrial demand, providing upside to energy and commodity equities even as the global transition to cleaner fuels remains uneven.

Assets in focus: Commodities

5. 🏡 Mortgage fall for first time in five weeks, opening a window for buyers

The 30-year fixed-rate mortgage averaged 6.85 %—down 4 bps from the prior week—for the first decline in five weeks, driven by easing Treasury yields and shifting market expectations. 

Despite lower rates, the median price of an existing US home reached $414,000 in April, keeping affordability strained even as inventory rose 31.5 % YoY in May, particularly in the South and West.

Why it matters: Even a small pullback in borrowing costs may encourage hesitant buyers, but record-high home prices continue to squeeze affordability, influencing both REIT valuations and residential developer outlooks.

Assets in focus: Real Estate

🌀 Diversification Score – Have you evaluated your portfolio's diversification?

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📊 Market Movements Snapshot

Asset Classes:

• 🟢 Gold +21.76 YTD. As central banks—especially in Asia and Eastern Europe—continued large-scale purchases to diversify reserves, pushing spot prices above $3,300 per ounce. Declining US Treasury yields (10-year at ~4.39% as of June 5) and a softer dollar have further bolstered gold’s appeal as an inflation hedge.
• 🟢 US Bonds: +2.51% YTD.  As Treasury yields fell from about 4.60% in April to 4.39% by June 5, boosting prices across the curve. Safe-haven flows amid mixed economic data and rate-cut hopes have supported high-quality bond demand, with short- and intermediate-duration Treasurys leading gains.

For the full list, click here

Sectors:

• 🟢 Utilities  +8.03% YTD. Driven by defensive rotation into high-dividend names as inflation cooled (eurozone CPI 1.9% in May) and Fed rate-cut expectations lowered financing costs for capital-intensive utilities. Accelerating investments in renewables and grid modernization—spurred by clean-energy mandates and rising electricity demand—have further underpinned sector momentum.
• 🔴 Energy: −3.73% YTD. As oil prices slipped from $85–$90 per barrel in late 2024 to $63–$65 by early June, amid renewed U.S. production growth and muted OPEC+ discipline. Slower demand growth—particularly in China and Europe—combined with rising inventories have kept crude under pressure, limiting upside for energy equities.

For the full list, click here 

🤯 Alternative investment highlight: From Newsstand to Investment Gold

Imagine picking up a comic book for a few cents, only to discover decades later that it’s worth millions. That’s precisely what happened with Amazing Fantasy No. 15, the 1962 comic that introduced Spider-Man to the world. Originally sold for just 12 cents, a pristine copy of this issue fetched a staggering $3.6 million at auction on 9 September 2021, making it the most expensive comic book ever sold.

But wait—there’s more: The Amazing Spider-Man #1 (published March 1963 at a cover price of 12 cents) sold for $1.38 million on 11 January 2024, in a Heritage Auctions sale held in Dallas, Texas, USA. That copy included Spider-Man’s first solo story (with his origin) and a team-up with the Fantastic Four.

Spider-Man himself was created by Stan Lee and artist Steve Ditko and made his debut the previous year in Amazing Fantasy #15 (cover-dated August 1962, on newsstands September 1962).

But these multimillion-dollar sales aren’t isolated flukes. The world of comic-book collecting has exploded in recent years. Golden Age issues (1930s–1950s) and Silver Age keys (1950s–1970s), especially those featuring first appearances or origin stories, routinely climb in value.

🧠 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.

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See you tomorrow! 

Fernanda de Francesco,

Editor, Diversification.com

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