- Vincent Spotlight
- December 1st - This Week in Alternative Investments
December 1st - This Week in Alternative Investments
Bite sized market updates
Home prices continue to tick up, according to two major indicators
Fast-fashion giant Shein filed to go public
SoFi is getting out of the crypto trading business
The Senate is worried about the quick rise of the private credit industry
Plus: Messi’s World Cup jerseys, Ronaldo’s crypto lawsuit and more
Card Ladder 50
Thomson-Reuters VC Index
FHFA House Price Index
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Smart Humans Podcast
Smart Humans explores the world of alternative investments. From Venture to Collectibles, Real Estate to Art and beyond - we discuss a new world of investment opportunities and the catalysts that impact their demand.
In this episode of Smart Humans, Slava Rubin talks with Masterworks’ Scott Lynn about art investing, researching the art market, and picking winners.
U.S. housing prices continue to rise, according to two major indices
The FHFA House Price Index and Case-Shiller U.S. National Home Price Index both showed housing prices rising. The FHFA numbers showed a 5.5% increase year-over-year, a 2.1% gain in Q3 versus Q2 and a 0.6% gain in September. The index has seen positive gains every quarter since the start of 2012. The Case-Shiller index showed a 3.9% gain year-over-year and a 0.7% gain in September, which marked the eighth straight month of gains as the index hit another all-time high. These numbers are showing that even as housing affordability has fallen and mortgage rates have risen, prices have stayed high largely due to historically low inventory. While prices on new homes have fallen recently, for existing homes, it is still a seller’s market and potential buyers may still need to be patient until something changes.
Controversial fast-fashion company Shein filed for a U.S. IPO. The Chinese-founded company now based in Singapore is one of the largest fashion retailers and has the most-visited clothing website in the world. It has used social media and data science to revolutionize fast fashion on its way to a reported valuation as high as $100 billion, though it was last valued at $66 billion. They are reportedly targeting an $80-90 billion valuation in the upcoming IPO, which would be one of the highest initial IPO valuations of all-time. The company has faced scrutiny after accusations of using forced labor, copyright infringement and its ties to China, all of which could be roadblocks on its way to a possible 2024 public market debut.
Online banking platform SoFi shut down its crypto trading service. A spokesperson for the company said the decision was based on increasing regulation from the federal government on how banks can handle crypto. Existing customers have until December 19th to migrate their holdings to UK-based Blockchain.com, which coincidentally just announced a $110 million funding round. As the U.S. government’s requirements surrounding crypto get stricter, other players may also choose exit the market. However, for now, most U.S. investors still have plenty of options if they want to buy, sell and trade crypto.
As the private credit market grows, concerns are growing about its lack of of transparency. Two senators asked regulators this week to do more to investigate the industry and ensure that there is proper oversight. As traditional banks have been rapidly growing their private credit efforts, there are concerns that it could pose “hidden dangers to the banking system”. Elsewhere, UBS chairman Colm Kelleher warned that there is currently a private credit bubble that could trigger a new financial crisis if it pops. While private credit has become a popular way to achieve yield in the current high interest rate environment, there is always the risk of default, and Kelleher is worried that a single failure could trigger a major crash.
Research and Insights from the Vincent team
More stories worth checking out
A set of six jerseys worn by Lionel Messi during last year’s run to a World Cup title has already received a $5.2 million bid at Sotheby’s - the auction will close on December 14th.
Meanwhile, rival soccer player Cristiano Ronaldo is facing a class-action lawsuit over his partnership with cryptocurrency exchange Binance.
Online private market investment platform Yieldstreet announced the acquisition of real estate platform Cadre, in a long-rumored move.
Remember the $4 thrift stop painting that sold for $191,000? Turns out the buyer never paid, something that happens more than it gets reported, so always take sales news with a grain of salt.
VC investment in Europe’s tech industry is projected to decline by 45% in 2023 - but as it has in the U.S., AI startups bucked the trend.
Altan Insights released their Fall 2023 Art Market report - a must read for anyone interested in a thorough recap of the recent auction season.
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