Alternative Investing Report - July 28, 2025

*as of 7/27; Sources: S&P, BTC, FTSE, DJRE, GOLD

A global survey of more than 10,000 wealthy investors taken earlier this month found that they doubled their portfolio allocations to alternative investments in the past year. Allocations to real estate, gold, crypto, and private market funds all increased, while allocations to equities, bonds, and cash all decreased. Additionally, the number of investors who plan on owning alts within the next year also doubled.

➨ TAKEAWAY: After a couple of years where investors shied away from riskier private market asset classes, it seems we are re-entering a more risk-on environment, with investors targeting higher returns. Gold has also emerged as a “safer” asset that can diversify a portfolio that is heavier in alts. The benefits of alts are not just for the wealthy, and retail investors should consider increasing their exposure.

In this episode of Smart Humans, guest host Eric Cantor talks with Wefunder CEO Nick Tommarello about the evolution of crowdfunding, the importance of community investing, and the need for democratization of investment opportunities.

This week, President Trump said that he is considering eliminating capital gains taxes on house sales, which follows a recent bill introduced to Congress proposing the change. Currently, homeowners who have lived in their home for two of the past five years are exempt from the first $250,000 in capital gains if they are single or $500,000 if married and filing jointly. Those thresholds have not changed since 1997, and the National Association of Realtors forecasts 70% of homeowners could have gains exceeding $250,000 — and 38% exceeding $500,000 — by 2035.

➨ TAKEAWAY: There is a long road from the President expressing a desire for a policy change to that change getting enacted. But the change would be massive for the housing market, as homeowners from the Baby Boomer generation have been disincentivized to sell their houses because they will face massive tax bills. The elimination of capital gains tax could increase housing supply and lower housing prices, saving money for both buyers and sellers.

🤖 Amazon buys Bee AI: The tech giant is buying Bee, an AI startup that makes a $50 wearable device that records and transcribes your conversations, signaling a deeper move into AI and wearables to compete with Apple, Meta, and Google.

🚀 Return fraud fix: Amazon also invested in a $12 million seed round for the 3D imaging startup Cambridge Terahertz that is trying to create a solution to reduce fraudulent returns, which cost retailers more than $100 billion a year.

🏡 Hottest housing markets: Manchester/Nashua, NH remains the the top housing market in the U.S. thanks to its booming job market and relative affordability. It was followed by Canton, OH, and Springfield, MA, as the list was dominated once again by Northeast and Midwest cities.

🪙 Crypto FOMO: Half of people who want to learn more about crypto feel like they have already missed out on the current bull market, but 20% of those who own no crypto are still planning to buy some by the end of the year.

🏢 Blackstone’s CRE recovery: The world’s largest CRE property owner took in $4.5 billion in investments for its real estate strategies as investors became more bullish on the sector’s recovery over the next 12 months.

🎨 Anti-money laundering bill: The Senate is considering a bill that would apply anti-money laundering protections to the U.S. art market, requiring art market professionals to do due diligence on clients, maintain records, and report suspicious transactions. If such a bill were to pass, it could have a dampening effect on market activity.

This week: Amazon, Apple, Meta, and Microsoft will report their quarterly earnings.

Tuesday: Consumer confidence report; S&P Case-Shiller home price index and FHFA house price index released.

Wednesday: The Federal Reserve will announce its interest rate decision; The National Sports Collectors Convention kicks off and runs through Sunday; pending home sales report released.

Thursday: Personal Consumption Expenditures (PCE) and Core PCE indices, the Fed’s preferred inflation metrics, released.

Friday: President Trump’s deadline for countries to come to trade agreements with the U.S.; July U.S. jobs report released.