July 10, 2025
4
min read
💬 Daily Observation
“If you can’t control your emotions, you can’t control your money.” – Warren Buffett
Almost Friday, and after a long post-holiday week full of ever-changing markets, Buffett’s point feels especially timely. It’s simple but profound. Our feelings, fear, greed, and impatience, are real wild cards in investing.
Even the most rigorous analysis can unravel in the heat of an emotional reaction to a scary headline or a sudden sell-off. By mastering our impulses, pausing before panic-selling or sticking to our plan when euphoria strikes, we keep our decisions rational.
Over time, that steady discipline separates consistent compounders from those who leap in and out, chasing fleeting trends.
☕️ So grab your coffee and let’s dive into today’s fresh edition of Diversification Daily.
🗞️ Today's stories that matter (and why)
1. 🛡️ US expands tariffs on 22 trading partners
Between July 9–10, the White House warned leaders of 22 countries that they face new or higher U.S. import duties, ranging from 20% up to 50%, unless they secure improved trade agreements by the August 1 deadline.
This wave of letters builds on fresh 50% levies on Brazilian goods and copper — a rate imposed under a Section 232 national-security finding meant to protect critical US industries (from defense to EV supply chains) and to punish Brazil’s alleged digital-trade restrictions and political disputes over former President Bolsonaro’s trial.
Despite these sweeping actions, global equity markets have shown only muted reactions so far.
Why it matters: These tariff threats, the broadest US protectionist move in decades, will drive up import costs on everything from raw materials to consumer goods, fueling inflationary pressures, bolstering the dollar and US Treasury yields, and forcing investors to rethink global trade–dependent allocations
Assets in focus: Commodities
2. 🏦 Fed minutes signal no rate cut for now
The Federal Reserve’s June meeting minutes revealed limited support among policymakers for an interest rate cut in July, with most officials citing persistent inflation pressures and tariff-driven price risks.
Only a handful favored an immediate reduction, while the majority prefer to await clearer economic data before easing policy.
Why it matters: Reinforces a cautious Fed stance, supporting bond yields and the dollar.
Assets in focus: Fixed Income
3. 🚛 Diesel supplies tighten ahead of winter
Global diesel inventories remain 23% below the five-year average after poor refining margins reduced output last winter. Ongoing sanctions on Russian fuel and seasonal demand peaks threaten to push transportation and heating costs higher.
Why it matters: Diesel is the workhorse of global logistics—higher diesel costs can filter through to consumer prices and squeeze company margins.
Assets in focus: Commodities
4.🛢 OPEC sees oil demand rising through 2050
In its World Oil Outlook, OPEC projects oil demand will rise from 103.7 mbpd in 2024 to 123 mbpd by 2050, contradicting IEA forecasts of peak demand in 2029. Secretary-General al-Ghais argued that fossil fuels remain crucial amid uneven energy access globally.
Why it matters: A long runway for demand supports oil prices and oil-sector equities, even as policymakers debate the energy transition.
Assets in focus: Commodities
5. 🤖 Tech stocks buoyed by Nvidia’s $4 trillion valuation
Asian markets ticked up 0.4% as Nvidia briefly hit a record $4 trillion market cap, lifting chip and broader tech stocks despite new US tariffs.
Investors remain focused on AI-driven earnings prospects even as President Trump’s trade measures loom.
Why it matters: Reinforces the tech-led market rally and underscores AI’s central role in driving equity valuations.
Assets in focus: Equities
🌀 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:
- 🟢 Gold +21.31% YTD. Gold’s rally is underpinned by safe-haven flows and record ETF inflows as investors brace for trade and geopolitical risks.
- 🟢 US Bonds +3.16 YTD. Have benefited from a Fed pause and steady demand for Treasuries.
For the full list, click here
Sectors:
- 🟢 Materials: +9.66% YTD. Jumped on renewed infrastructure spending and robust “transition-metal” demand for copper and lithium.
- 🔴 Health Care: -3.26% YTD. Lagged on patent expiries, regulatory uncertainty, and cost-pressure headwinds.
For the full list, click here
🤯 Alternative investment highlight: 🚀 SoFi’s $10 ticket to OpenAI & SpaceX
SoFi Technologies just launched private-market funds that let retail investors own slices of blockbuster startups, OpenAI and SpaceX, with minimums as low as $10, down from the $25,000 entry barrier of prior offerings.
Partnering with Cashmere, Fundrise, and Liberty Street Advisors, these funds bundle stakes in leading AI, space-tech, and other high-growth ventures into a neat, low-cost package.
While Robinhood’s “tokenized” versions stirred controversy, OpenAI disavowed any link, SoFi’s regulated funds offer true economic exposure, complete with professional oversight and SEC compliance.
Democratizing access to the startups defining tomorrow’s economy could reshape how millennial and Gen-X investors diversify beyond stocks and bonds, slashing barriers to $100-billion-plus private markets.
🧠 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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