June 18, 2025
4
min read
💬 Daily Observation
"Money’s greatest intrinsic value, and this can’t be overstated, is its ability to give you control over your time.” — Morgan Housel
As we cross the mid-year mark, I want to bring you a reflection on life goals today. Aligning your finances with personal milestones keeps you motivated, balances enjoyment with discipline, and ensures your wealth truly fuels the life you want.
Life goals are part of wealth. Saving without an investment plan can unintentionally delay real-life progress—travel, family milestones, a new home, or career shifts—until things feel “safe,” compounding into regret.
We often save for abstract fears rather than clear objectives; reframing cash flow into purpose-aligned investments, whether that’s a trip that broadens your horizons or education that boosts your income, turns saving into meaningful action.
Building in both life goals and long-term compounding prevents regret, keeps you engaged, and ensures your wealth works for both today’s memories and tomorrow’s security.
Have you thought about this?
☕ So grab your coffee, and let’s dive in today's fresh edition of Diversification Daily.
🗞️ Today's stories that matter (and why)
1. 🛒 US retail sales tumble 0.9% in May
Retail sales fell 0.9% in May, the largest monthly decline in four months, as auto sales plunged ahead of tariff-driven price hikes and consumers cut back on gasoline and dining out.
Core retail sales (ex-autos, gas, building materials and food services) rose 0.4%, indicating underlying spending remains tepid.
Why it matters: Slower consumer activity may curb GDP growth and reinforce expectations that the Fed will hold rates steady.
Assets in focus: Equities
2. 🏗️ US housing starts plummet to five-year low
Privately owned housing starts fell 9.8% in May to a 1.26 million annualized pace, the weakest since May 2020, as builders pulled back amid rising material costs, labor shortages, and growing inventory.
Building permits, a forward-looking gauge, dipped 2% from April, signaling that new-home construction may stay subdued in the coming months.
Why it matters: Continued weakness in housing construction can drag on GDP growth and pressure cyclicals tied to homebuilding.
Assets in focus: Real Estate
3. 🏘️ Lennar sees average home prices hit five-year low
Lennar reported its average home sales price slipped to $389,000 in its latest quarter—the lowest since 2017, down 8.7% year-over-year, as the builder offered mortgage-rate buydowns and other incentives to stimulate demand.
Despite softer prices, gross margin held at 17.8%, and is expected near 18% this quarter; deliveries rose 2.2% to 20,131 homes versus 22,601 new orders, a slight miss on forecasts.
Why it matters: Easing home prices point to growing affordability strains that can ripple through consumer spending and real estate sensitive sectors.
Assets in focus: Real Estate
4. ⚖️ Senate passes GENIUS Act to regulate stablecoins
The US Senate approved the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in a bipartisan 68, 30 vote, creating the first federal framework for stablecoin issuance and oversight.
The legislation mandates one to one backing with liquid assets, monthly reserve disclosures, and confines issuers to insured banks or authorized nonbanks under strict consumer-protection and anti-money-laundering rules, and it also bars government entities from issuing stablecoins to avoid conflicts of interest.
The bill now heads to the Republican-controlled House before reaching the president’s desk.
Why it matters: Clear rules reduce regulatory uncertainty for digital dollars, bolstering adoption while safeguarding financial stability.
Assets in focus: Alternatives
5. 🚢 Eni CEO sees no imminent closure of Hormuz Strait
Eni’s Claudio Descalzi, CEO of Eni (Italy’s second-largest oil and gas company), said oil markets aren’t pricing in a shutdown of the Strait of Hormuz despite Israeli–Iranian hostilities, with Brent crude trading near $76.60 per barrel.
He argued that any blockade would hurt Iran most and likely trigger US intervention—outcomes global leaders would seek to avoid.
Why it matters: Oil prices may stay anchored unless the conflict escalates into direct disruptions of a key shipping chokepoint.
Assets in focus: Commodities
🌀 Diversification Score – Have you evaluated your portfolio's diversification?
Are you spread across the right risk factors—or leaning on just a few big bets?
📊 Market Movements Snapshot
Asset Classes:
- 🟢 US Growth Equities (NASDAQ) +3.50 YTD. Fueled by robust Q1 earnings from Big Tech names like Oracle, Intuit, and Netflix that outpaced expectations and reignited AI-driven optimism among investors. Easing trade tensions and the prospect of Fed rate cuts later this year have further bolstered appetite for high-multiple growth stocks, with ETFs such as QQQ riding the rally.
- 🟢 US Bonds +1.58% YTD. Yields have eased on expectations the Fed will hold rates steady following softer inflation and labor data. Strong demand at recent Treasury auctions—such as the $22 billion 30-year sale at an 8-basis-point yield concession—has further supported bond prices.
For the full list, click here
Sectors:
- 🟢 Energy: +3.20% YTD. Driven by a more than 4% jump in WTI crude futures amid renewed Middle East hostilities that lifted oil-producer stocks. Companies from Valero to Chevron posted 2–3% gains as investors sought a hedge against potential supply disruptions.
- 🟢 Industrials +7.85% YTD. Bets on automation upgrades, infrastructure spending, and improved trade relations have boosted manufacturing names. The Industrial Select Sector ETF approached its all-time high amid optimism over AI-driven data-center investments and tariff roll-backs.
For the full list, click here
🤯 Alternative investment highlight: 💎 When a 17th-Century Kirman Carpet fetches $33.7M at Sotheby’s
When a 17th-century carpet quietly crossed the auction block in New York, most bidders expected a high five- or low six-figure result. Instead, the Clark Sickle-Leaf Carpet—a finely woven Kirman piece once owned by Montana copper baron William A. Clark—sold for $33.7 million at Sotheby’s in June 2013. Imagine turning a simple floor covering into a conversation starter worth more than a mid-sized suburban home.
This isn’t about betting on tomorrow’s stock ticker; it’s a reminder that sometimes value lies in stories, provenance, and the rare. Like an off-market private equity deal, you seldom see these transactions, and they spark fascination because they blend art, history, and money in one sweep.
The carpet’s intricate pattern survived nearly four centuries—proof that quality craftsmanship can endure far longer than many financial products.
You don’t need to own a museum piece to learn from it. Think of this sale as a psychological mirror: we value what connects us to a narrative greater than ourselves—whether that’s a piece of silk woven in 1600s Persia or a business built on solving investors’ real problems.
Real money often chases real stories. Understanding what drives people to pay extraordinary sums can shine a light on broader market behavior: scarcity, sentiment, and the search for meaning. Even if you never bid on a Persian carpet, recognizing these forces can help you spot surprising value elsewhere.
🧠 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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