Sep 24, 2025

min read

💬 Daily Observation

“Pessimism sounds smarter, but optimism is usually more profitable.” — Morgan Housel
Smart doesn’t always beat simple. If you own productive assets and give them time, optimism is less a mood and more a math problem: compound returns need runway.

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

🗞️ Today's stories that matter (and why)

1. ⚡AI data centers strain US grid; natural gas fills gaps

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As Big Tech accelerates AI buildouts, utilities say data-center demand is outrunning available power in key markets.

Executives note that natural gas is often filling gaps when wind/solar dip, an expedient (if imperfect) bridge while transmission and nuclear scale over years. Policy friction and interconnection queues are slowing hookups.

Why it matters: Power availability is becoming a hard constraint on AI timelines, tilting near-term tailwinds to gas producers/midstream, select utilities, and data-center REITs, while raising cap-ex and permitting risks.

Assets in Focus: Commodities

2. 💵 Dollar firms after Powell’s cautious tone on rate cuts

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The US dollar strengthened as GBP/USD slipped ~0.35% to $1.34795 (from ~$1.353) after Chair Powell avoided signaling aggressive near-term cuts.

The US dollar index was up ~0.3% on the day, pressuring non-USD FX like sterling as traders reassessed the pace of easing.

Why it matters: A firmer dollar tightens global financial conditions, often a headwind for commodities and non-US earnings, and a tailwind for US importers.

Assets in Focus: Currencies

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3. ₿ SEC streamlines crypto ETF approvals, alt-coin funds may follow

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The SEC updated its standards to fast-track crypto ETFs, cutting typical timelines to ~75 days for qualifying products and prompting a fresh wave of filings that could broaden offerings beyond bitcoin/ether (potentially Solana/XRP) by early October.

Why it matters: Easier ETF paths can funnel traditional capital into crypto, raising liquidity and correlations with mainstream markets. Useful for diversification, but adds another risk-on lever.

Assets in Focus: Alternatives

4. 🏭 US business activity cools again in September (flash PMI)

‍S&P Global’s flash composite PMI eased to 53.6 (from 54.6 in August) as both services and manufacturing growth moderated; firms reported higher input costs (tariffs) but softer pricing power.‍

Why it matters: Cooling growth plus sticky costs keeps the “soft-landing” path narrow and the Fed cautious, supportive for longer duration, but mixed for cyclicals.

Assets in Focus: Equities

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5. 🏛️ US shutdown risk rises after White House meeting scrapped

Funding talks hit another snag as President Trump canceled a meeting with Democratic leaders aimed at averting an Oct. 1 partial government shutdown, raising the odds of service disruptions and delayed payments across federal agencies. A Senate stopgap has already stalled.

Why it matters: Shutdowns don’t fix budgets, but they dent confidence, delay data releases, and ripple through contractors and consumer spending, often adding volatility to rates and equities.

Assets in Focus: Fixed Income

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

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🤯 Alternative investment highlight: 🎮 A sealed 1986 Donkey Kong just sold for ~$371,000

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A factory-sealed, first-production (“Gloss Sticker”) NES copy of Donkey Kong fetched $370,880 at Goldin Auctions, smashing the prior record for the title (~$72k).

That’s a six-figure price for 8-bit cardboard and plastic, paid for scarcity (pop-1 grade), provenance, and nostalgia. Party fact: some collectors call these early NES “Black Box” prints the rookie cards of video games.

🧠 From the Education Center: How Much of the Wealth Divide Comes Down to Tax Policy?

According to data from the Federal Reserve, the top 1% of US households held about 28.1% of the nation’s wealth in Q1 2009. By Q1 2019, that figure had risen to 30.4%. Meanwhile, the bottom 50% held just 0.5% in Q1 2010 and only 1.6% a decade later. 🔗Learn more

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