Alternative Investing Report - August 20, 2024

_{*as of market close August 19}

Vice President and Democratic nominee Kamala Harris released her economic plan, which included policies targeting the U.S. housing shortage, including a proposal to build 3 million homes in four years and a tax incentive for developers to build starter homes. On the demand side, the plan includes a proposal offering $25,000 to first-time homebuyers.

➨ TAKEAWAY: The policy announcement comes on the heels of the news that housing starts hit a four-year low, with new home construction falling by 16% year-over-year. Single-family construction in particular has slowed down, falling by 14.1% month-over-month. Harris’ plans would spur construction activity, which in turn would increase supply and likely keep prices in check. Of course, it is no guarantee that she is elected, or that these policies will be implemented, but the proposals entering public discourse is a first step towards become reality.

In the first half of 2024, sales of artwork by young artists fell by 39%, while the prices for “ultracontemporary” artists fell by a third between 2021 and 2023. Paintings by artists such as Amani Lewis, Emmanuel Taku and Allison Zuckerman have fallen over 90% in value as the art market has hit a downturn and collectors turn to more established artists.

➨ TAKEAWAY: When paintings that sold for hundreds of thousands get resold for tens of thousands, it can hurt an artist’s reputation, but it also potentially creates an opportunity to buy low on young artists who once commanded high prices. The wild fluctuations in auction prices also highlight how much riskier investing in less established artists can be.

Last Thursday, Vincent's Slava Rubin was joined by Republic President Andrew Durgee and SKI Partners' founder Stuart Goldfarb to talk about sports teams as an asset class and opportunities for everyday investors to get involved.

🌟 Most valuable toy: An exceedingly rare 1979 Kenner rocket-firing Boba Fett prototype action figure sold for a record-breaking $1.34 million at Goldin Auctions, more than double the previous record of $525,000 set last year. There are only three of this variation known to exist, and around 100 total after this version of the toy never made it out of the prototype stage.

🏡 $1 million homes: A record 8.5% of U.S. homes are now worth seven figures or more, up from 7% a year ago and 4% in 2020, with California home to the highest proportion, and San Francisco and San Jose leading the way with around 80% of their homes topping $1 million.

💵 PGIM eyeing private credit: The asset manager, formerly known as Prudential, is reportedly raising a direct lending fund to compete with Blackstone, Ares, and others, in another example of a major company expanding its private credit capabilities.

⚾ Fanatics Fest recap: Collectibles took a backseat as celebrity and athlete sightings and signings dominated the inaugural weekend, though with a lot of kid-focused activities, it seems like Fanatics is building interest for the next generation of sports fans and collectors.

🪙 ARC Crypto Incubator: A members-only NFT community announced a $4.5 million raise to start a Y Combinator style incubator for web3 projects, a new model for startup investing.

🚀 AMD acquires ZT: The chipmaker spent $4.9 billion in cash and stock to acquire the AI equipment maker as it tries to keep pace with Nvidia.

The Lupin Lodge Naturist Club, a Los Gatos, CA, nudist resort that originally opened in 1935, is being offered for sale for the first time in 47 years. The property sits on 112 acres and features a restaurant, swimming pool, tennis, basketball and volleyball courts, cabins, yurts and a water plant. The asking price is $32.8 million but the new owner does not have to keep it clothing-optional. For anyone looking to check it out, the club will be open to the public from August 23-25, with tickets between $35 and $90.