Sep 08, 2025

min read

“Survival is the only road to riches.” — Peter L. Bernstein

“Survival” isn’t timid, it’s a plan for staying able to hold when markets are uncomfortable. Most portfolio damage happens when people are forced into decisions by timing or stress, not because a single pick was wrong. The practical orientation is simple: keep near-term spending money separate so bills never decide for you; keep any one position small enough that a downturn is unpleasant, not existential; and make changes on a set review cadence so ideas get captured in notes first and acted on later.

Perfect plans crack under pressure. Durable plans let time and compounding do their quiet work.

☕ Let’s dive in today’s fresh edition of Diversification Daily.

🗞️ Today's stories that matter (and why)

1. 📊 US ‘inflation week’: PPI Wednesday, CPI Thursday

‍Futures edge higher into a PPI/CPI double-header, which could lock in expectations for a September Fed cut. Official timing: PPI Wed, Sep 10 and CPI Thu, Sep 11, 8:30 a.m. ET

Why it matters: Inflation prints steer rates, the dollar, and multiples—core drivers for diversified portfolios.

Assets in Focus: Fixed Income

2. 🏠 US housing cools: more price cuts, listings linger

Affordability is biting. Sellers are cutting asking prices or pulling listings, and active listings have risen for 21 straight months while existing-home sales hover near three-decade lows; mortgage rates in the mid-6% range keep demand muted

Why it matters: Real estate is rate-sensitive. Softer activity pressures REITs and homebuilders, while any rate relief later could quickly change momentum—match exposure to your time horizon.

Assets in Focus: Real Estate

3. 🇯🇵 Japan leadership race after PM resigns; yen slips

After Prime Minister Shigeru Ishiba resigned on Sep 7, the LDP triggered a leadership contest. Markets moved on the uncertainty: USD/JPY traded near 148.4 (about +0.6% on the day) and the 30-year JGB yield hovered around 3.285%, matching record highs, while Japanese stocks hit an all-time high on the weaker yen.

Why it matters: Japan’s policy mix (BoJ path + potential fiscal stimulus) drives JPY and JGBs—currency swings can dominate returns for US holders of Japan funds.

Assets in Focus: Currencies

4. 📦 China’s exports cool in August

‍
Exports rose 4.4% YoY, the slowest in six months and below forecasts; imports also underwhelmed as tariff frictions bite

Why it matters: Global manufacturing and commodities lean on China’s demand; softer trade tempers earnings for industrials and shippers.

Assets in Focus: Equities

5. ₿ Crypto catches a bid as policy hopes simmer

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Bitcoin trades back around $110k–$112k, with traders tying gains to easier-policy expectations and ETF flow dynamics.

Why it matters: Crypto’s sensitivity to liquidity makes it a useful (but volatile) gauge of risk appetite in diversified portfolios.

Assets in Focus: Alternatives

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

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📊 Market Movements Snapshot

Asset Classes:

🟢 Developed Market Equities: +19.27% YTD . European and Japanese markets continued their rally on constructive Q3 earnings and improved investor outlook, as a slightly softer US dollar boosted cross-border returns.
🟢 US Bonds: +5.64% YTD. Bond prices rose as markets leaned into expectations of imminent Fed rate cuts following weak US payroll data and dovish commentary from Fed officials.

For the full list, click here

Sectors:

🟢 Communication Services: +21.31% YTD. The sector soared on surging digital ad demand, particularly for AI-optimized campaigns, with Meta and Google leading the charge in refreshed marketing spending.
🟢 Materials: +12.92% YTD. Strong infrastructure and green-energy investment across the US and Europe continued to elevate demand for industrial metals and construction inputs.

For the full list, click here

🤯 Alternative investment highlight: 🚔🎨 US Marshals Auction $35.8M in Blue-Chip Art

Four works tied to the 1MDB scandal—two Basquiats (Red Man One and Self Portrait), a 1939 Picasso still life, and Diane Arbus’s famous Central Park photograph—were sold online by a government contractor for roughly $35.8M in total. Hammer prices: $22.00M, $8.33M, $5.01M, and $0.50M, respectively; bidding closed Sept 4, 2025. It’s part of the government’s effort to claw back billions allegedly stolen from Malaysia’s sovereign fund.

Why this was so weird (and kind of amazing): instead of Christie’s or Sotheby’s, the sale ran on a no-frills US Marshals auction site—complete with a $5,000 bidder deposit and no buyer’s premium (translation: none of the usual 15–25% fee tacked onto winning bids). Several pieces had passed through Leonardo DiCaprio’s collection before being surrendered to the feds years ago. Blue-chip art, a government auction portal, and zero premium—collector trivia you can drop at dinner.

🧠 From the Education Center: Is private credit hiding more risk than it shows?

High yields and low daily volatility don’t always tell the full story in private credit markets.

🔗Learn more

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