*as of 9/1; Sources: S&P, BTC, FTSE, DJRE, GOLD

Through the end of Q2, average U.S. farmland values had increased 3.4% annually from the prior year, standing at $4,500 per acre according to the USDA. Cropland rose 3.3% to $6,020 per acre, while pasture land rose 4.2% to $2,000 per acre. When factoring in cash rent yields, cropland was up around 6% in the past year, down from the historical average. Still, the limited and shrinking supply and increasing demand from buyers are creating opportunities for investors in the sector.

➨ TAKEAWAY: Farmland is a steady asset class that gives investors the opportunity to generate yield and uncorrelated returns while acting as an inflation hedge. It is an inherently inefficient asset class as local markets differ significantly and there is limited publicly available price data. The upside potential is limited, and it functions best as a part of a diversified portfolio given its illiquidity and long-term outlook.

In the newest episode of Smart Humans, Slava Rubin and Jan-Erik Asplund explore the recent IPO of SpaceX, its market performance, and the potential upcoming IPOs of major AI companies like OpenAI, Anthropic, and Databricks. To dig deeper into this theme, grab a remaining seat at next month’s Anthropic IPO preview.

🚀 Shein’s IPO disappoints: The Chinese fast fashion company once worth more than $100 billion went public on the Hong Kong market at a valuation of $26 billion, and its shares fell 9% in its first day of trading.

🏡 New construction rankings: Two South Carolina metro areas - Charleston and Greenville - are the best markets for purchasing new homes, based on inventory, affordability and climate risk. Overall, six of the top ten markets are in either North or South Carolina, as mid-sized markets and college towns dominate the rankings.

🎰 Polymarket fundraise: The prediction markets startup is raising $1 billion at a $21 billion valuation, 40% higher than its last valuation six months ago. The round was led by Donald Trump Jr.’s venture firm 1789 Capital, which would seem to give it a leg up in confronting regulatory challenges over the next couple of years.

🏢 Multifamily is recovering: The overall vacancy rate for the U.S. multifamily housing market is below 9% for the first time in two years, with demand increasing across all classes of properties. Asking rent growth is accelerating, new supply has slowed, and landlord are offering fewer concessions to lure tenants.

💵 Colleges using endowments: As enrollment drops, a number of colleges are dipping into their endowments to cover operating expenses. This could affect both venture capital and private equity firms, as college endowment funds are large institutional investors into both asset classes.

🎨 Top fall exhibitions: ArtNews released its list of the most anticipated fall art exhibitions around the globe, including Roy Lichtenstein at the Whitney and Lee Krasner and Jackson Pollock at the Met in New York. The list is worth perusing to see which artists could see their profiles increase through the end of the year.

While the correction of the crypto market over the past week was not too surprising given the previous week’s massive gains, the native token of the Polygon network fell by more than 25%, by far the largest drop of any token in the top-100, while the overall market was down only 2%. POL’s price is down 67% in the past year and 85% since it was launched in late 2023, and it has regularly been hitting all-time lows since January. The Polygon network is most notable for its relationship with the prediction market Polymarket, whose popularity has not translated to the Polygon token. Apparently,
nearly all funds on-ramping to the Polygon network are arriving as stablecoins rather than its native token, meaning users have little reason to buy it.