*as of 6/15; Sources: S&P, BTC, FTSE, DJRE, GOLD

For the first time since 2000, private markets have underperformed the S&P 500 across one, three, five and ten year time horizons according to a State Street index tracking PE, VC and private credit fund returns. This underperformance coincides with individual investors gaining more access to private markets and private funds, as firms seek more sources of capital.

➨ TAKEAWAY: While the continued push towards the democratization of private market assets is a good thing, there are concerns that the performance of these funds is slowing down. Moody’s just warned that the influx of retail investors could cause liquidity and asset quality risks in the private credit sector. Still, major alternative asset managers continue to target high net-worth and individual investors - for example, BlackRock is looking to raise $400 billion in private capital by 2030.

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In this episode of Smart Humans, Slava Rubin talks with Fenchurch Legal's CEO and Founder Louisa Klouda about the world of litigation finance and the opportunities ithe asset class presents for investors.

💰 Gold surges: The price of gold rose by nearly 4% in the past week and is nearing another all-time high as the deepening conflict in the Middle East pushes investors to jump to the “safe haven” asset.

🪙 Corporate stablecoins: Walmart and Amazon are reportedly looking into creating their own stablecoins in a move that could upend the current credit and debit card industry and usher crypto further into the mainstream.

📊 Consumer sentiment rises: The University of Michigan consumer sentiment index was up 15.9% in May, well above expectations, as fears over tariffs softened, even though it remains down year-over-year.

🏡 Home price forecast: Zillow is projecting home prices to decline by 1.4% nationally in 2025, with single-family rents to rise 2.8% and multifamily rents to grow by 1.6%.

🤖 Y Combinator’s AI push: Nearly half of the leading startup incubator’s spring cohort is comprised of AI agent startups, as AI continues to take over the VC world.

🏢 Apartment occupancy rising: Class A apartment occupancy rates are up almost two percent year-over-year with renters flocking to luxury apartments, and overall apartment vacancy rates are now lower than pre-pandemic numbers.

🚀 Quantum computing is coming: Nvidia CEO Jensen Huang thinks there could be some breakthroughs in quantum computing over the next few years, as the sector picks up momentum with investors.

🎨 Tiffany window sale: Two recent design sales at Christie’s brought in more than $23 million, with the standout Tiffany “Goddard Memorial Window” selling for $4.3 million, well above its $3 million pre-sale high estimate.

This week: The G7 Summit in Alberta, Canada.

Tuesday: Homebuilder confidence index released; U.S. retail sales report released.

Wednesday: The Federal Reserve will announce its interest rate decision - prediction markets peg a 97% chance of no change; Housing starts and building permits data released.

Thursday: Juneteenth federal holiday, markets are closed.

Saturday: Goldin’s Spring Vintage auction, featuring a T206 Honus Wagner card which has already been bid up to $3.9 million.