July 28,2025

min read

“Small disciplines repeated with consistency every day lead to great achievements gained slowly over time.” — John C. Maxwell

Last week we talked about evolving and asking new questions. Nothing helps you answer those questions better than starting the week with your goals clearly set, and the discipline to stick to your plan.It may feel like small steps today, but your future self will high‑five you for each one.

Monday motivation:

A former college dropout and near‑homeless options trader, Jason Brown rebuilt a six‑figure portfolio in just 18 months and, by age 43, parlayed those disciplined, four‑rule strategies into a seven‑figure fortune. He started by surviving on free Panera samples and café Wi‑Fi, then taught himself to lock in profits early, set clear loss limits, and maintain a 1:3 risk‑reward ratio, proof that emotional control and consistent habits can turn rock‑bottom setbacks into lasting success.

☕️ So grab your coffee and let’s dive into today’s fresh edition of Diversification Daily.

🗞️ Today's stories that matter (and why)

1. 📅 Packed economic calendar ahead

Investors face a packed schedule: the Federal Reserve’s rate decision on July 29–30, June’s PCE inflation report (the Fed’s preferred gauge), and July’s non‑farm payrolls, all within three days.

Why it matters: These are the central bank’s own data points on inflation and labor, if inflation cools and job growth slows, markets will likely price in rate cuts later this year.

Assets in Focus:Fixed Income

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2. 📊 Fed set to maintain rates amid mixed data

The Federal Reserve is widely expected to keep the federal funds rate at 4.25%–4.50% at its July 29–30 meeting, despite political calls from President Trump for cuts.

While inflation has ticked up to 3.5% y/y driven partly by tariffs, uneven employment and weaker housing data have divided policymakers. A few governors may dissent for a rate cut, but Chair Powell and the majority favor patience until clearer data emerge.

Why it matters: Holding rates steady supports bond prices but keeps borrowing costs elevated for businesses and consumers; any dissent signal could spur market volatility.

Assets in Focus: Fixed Income

3. 🌐 EU–US tariff deal and China truce extension

The United States and European Union agreed to cap most tariffs at 15%, averting threatened levies of up to 30% on key exports and safeguarding roughly a third of global trade flows.

This mirrors the 15% framework struck with Japan in June, reinforcing bilateral trade and investment ties after Tokyo committed over $500 billion in new US investment.

The EU deal also secures about $750 billion of US energy sales and expanded EU defense procurement commitments.

Attention now shifts to China: Treasury Secretary Scott Bessent and Vice Premier He Lifeng will meet in Stockholm on July 28–29 to extend their tariff truce.

Those talks aim to roll over the pause, set to expire August 12, by 90 days to avoid snapping back to triple‑digit duties, preserving the ceasefire through mid‑November and reducing risk of supply‑chain shocks.

Why it matters: Locking in 15% tariffs with the EU and Japan removes a major overhang for exporters and importers, clarifying cost structures and underpinning corporate earnings forecasts. Rolling over the China truce buys crucial time for deeper negotiations, damping fears of abrupt policy shifts that could jolt commodity prices and inflation expectations. Together, these moves ease policy uncertainty across equities, fixed income, commodities, and currencies, allowing markets to refocus on fundamentals.

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Assets in Focus: Equities

4. 🏠 Small investors now buy one‑quarter of US single‑family homes

With individual homebuyers sidelined by high prices and mortgage rates, small investors, those owning fewer than 100 properties, are now snapping up roughly 25% of US single‑family home purchases, up from under 15% a year ago.

Builders in key markets like Texas and Florida have offered discounts and incentives on excess inventory, drawing cash‑ready investors who renovate and rent for income.‍

Why it matters: This shift reduces supply available to traditional buyers, particularly first‑time purchasers, and may put upward pressure on home prices and rents, complicating affordability. For owners of REITs and housing‑related equities, rising investor demand signals potential upside, but it also highlights a bifurcated market where policy changes (e.g., tax incentives or rate cuts) could quickly alter dynamics

Assets in Focus: Real Estate

5. 🚀 Weekly stock highs on earnings and easing tensions

Last week, the S&P 500 notched a record closing high on Friday, its E‑minis surged 0.29% while Nasdaq 100 futures jumped 0.48%, marking eight record closes in the past nine sessions amid strong “Magnificent Seven” earnings and easing trade tensions.

Why it matters: Record highs signal robust corporate profits and calmer geopolitical risk, boosting investor confidence; however, US equities now trade about 30% above their decade average, prompting some funds to rotate into defensive sectors to guard against a potential pullback.

Assets in Focus: Equities

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🤯 Alternative investment highlight: 🎴 Caitlin Clark “Logowoman” rookie card sells for record $660,000

A one‑of‑a‑kind 2024 Panini Flawless WNBA Platinum “Logowoman” rookie card of Indiana Fever star Caitlin Clark fetched an eye‑popping $660,000 at a Fanatics Collect auction on July 24, shattering the previous $366,000 record for her Panini Prizm rookie card set in March.

This sale marks the highest‑ever auction price paid for a female athlete’s trading card, outstripping typical six‑figure sports memorabilia transactions and spotlighting how even injury‑limited seasons can’t cool demand for marquee collectibles.

Despite Clark appearing in only 13 of 25 games this season, collectors bid fiercely for the autograph and WNBA logo patch embedded in the card, underscoring the blend of fandom and speculation that drives these niche markets.

The sale, conducted in cryptocurrency‑friendly terms by Fanatics, shows how alternative assets ranging from digital art to rare sports cards now command real money stakes, offering party‑worthy anecdotes and tangible reminders that “alternative” doesn’t mean small scale.

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🧠 From the Education Center: Is scarcity mindset killing your investment returns?

Playing it safe can quietly cost more than any market crash. Holding too much cash out of fear may feel responsible, but it often means missing the upside.

Over time, missed growth can erode wealth more than short-term losses ever would.

Explore how scarcity thinking sabotages long-term returns: 🔗Learn more

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