Alternative Investing Report - July 16, 2025

*as of 7/15; Sources: S&P, BTC, FTSE, DJRE, CL50

The consumer price index (CPI), a measure of U.S. inflation, increased by 0.3% in June and by 2.7% yearly, the highest annual rate since February and still above the Federal Reserve’s 2% target. Core CPI, which excludes food and energy costs, was up 0.2% in June and 2.9% on the year. These numbers were in line with consensus forecasts and as a result, the reaction from the public markets was relatively muted.

➨ TAKEAWAY: There has been concern that tariff policy would increase inflation and June’s reading showed signs of that being the case. The reports from the next couple of months will be of particular interest, especially if the proposed August 1 tariffs on more than 20 countries go through. The increase in the rate of inflation just solidifies that the Fed is unlikely to cut rates this month, and calls into question whether a September rate cut is still on the table.

This week, the House of Representatives is expected to vote on three separate crypto bills — the GENIUS act, which would establish a regulatory framework for stablecoins, the CLARITY act, which would define when tokens count as commodities versus securities, and a bill that would prevent the Federal Reserve from issuing its own digital currency that could compete with existing stablecoins. All three bills are expected to pass, though there were procedural roadblocks on Tuesday that President Trump said will be cleared up by today. The GENIUS act has already passed the Senate, so passing the House would send it to the President’s desk to become law, while the other two would need to pass the Senate if and when they make it through the House.

➨ TAKEAWAY: The enthusiasm over favorable crypto legislation potentially becoming law is one reason Bitcoin hit multiple all-time highs last week, and interest in Bitcoin futures and net inflows to Bitcoin ETFs are both surging. Although the bills are expected to pass and the market has mostly priced that result in, it could see another jump when it actually happens, particularly because of the media attention that is sure to follow.

💵 Opening up private markets: President Trump is reportedly going to sign an executive order in the next few days designed to make it easier to include private market investments in U.S. retirement plans. This could be another step forward in giving retail investors more avenues to access alternative assets.

🏢 Senior housing surging: The occupancy rate across U.S. senior housing communities hit 88.1% in Q2, the highest level in years, with particularly strong rates for independent living properties and active adult rental communities. Demand for senior housing is only going to rise as the over-65 population swells while new supply is not keeping pace, meaning that rents will continue to grow.

🎬 Movie memorabilia auction: Heritage’s Hollywood/Entertainment auction kicks off its live portion today, with items such as a Star Wars X-Wing model and Indiana Jones’ whip already receiving bids above $200,000.

🏡 Out-of-market homes: Nearly 60% of listing views from the top 100 metro areas in Q2 were for homes in different metro areas, meaning that buyers are looking for homes away from where they live. This trend is particularly pronounced in big cities, with residents of San Jose, Washington, DC, and Seattle showing the most out-of-market demand.

🚀 Mexico surpasses Brazil: In Q2, Mexican startups raised 85% more capital than they did a year ago, and for the first time since 2012 the Mexican contingent brought in more VC dollars than their Brazilian counterparts, signaling a potential shift in Latin America.

🤖 Meta data centers: CEO Mark Zuckerberg said the company is expecting to spend hundreds of billions on new data center construction in the U.S. to fuel its AI operations, with the first center coming online next year in Ohio.

In a strong week for the crypto market that saw Bitcoin hit multiple all-time highs, the top performing major token was Stellar, which nearly doubled in price before dropping slightly the past couple of days. The major catalyst for the rise in price was an expansion of Stellar’s partnership with PayPal, which saw Paypal’s stablecoin PYUSD integrated onto the Stellar blockchain. After hitting a yearly high of $0.57 in December, Stellar’s price slowly fell to $0.22 earlier this month before its recent recovery.