Second, investment teams are utilizing AI research agents to conduct scenario analyses that leverage historical data from a multitude of previous deals, thereby better preparing research and sales teams. While AI is certainly upending business hiring practices, leaner, more efficient business practices drive M&A activity by allowing a fund’s human assets to take on new business development at a rate that would have been unthinkable without a complementary AI partner.

Some of the country’s largest public pension funds have been traditionally bullish on alternative investments. As of June 2023, the California Public Employees Retirement System led the nation with $60.15 billion in private equity investments, followed by the California State Teachers Retirement System with $48.95, and the Washington State Investment Board with $44.90.

Wyoming is on the verge of launching the first state-issued stablecoin. One of the co-authors of the GENIUS Act is Wyoming Senator Cynthia Lummis, and the state has been laying the legal and regulatory groundwork since 2018. In mid-July, the custom-built Avalanche blockchain tested a real-time contractor payment, and the results were staggering.

Another interesting segment that has caught the eye of social-media marketing agencies is the “micro-influencer.” These are folks with followers over X of 20,000 or Instagram with 100,000 plus who post their parlay picks. SGG Media, an agency out of California, manages over 2,200 influencers in the sports sphere, and compared to traditional media advertising, DraftKings and others are reaching bigger audiences for far less money.

It’s never polite to speak of losers, but the renewable energy sector at large was shellacked in the big, beautiful bill. According to the Tax Foundation, the total of the tax credits that will either be phased out, restricted, or terminated for low-carbon energy is estimated to be $500 billion lower over the next ten years. It’s not all sour news, however, for renewable energy, as the full value of battery energy storage credits is slated to be extended through 2033.

The consumer services sector is another hot target for PE and family-owned businesses. Through the first half of 2024, consumer and retail investing accounted for 45% of the total deal count. Roughly 80% were valued at $50 million or below, and like the logistics and supply chain services sector, the consumer services contain a plethora of small business ventures that spread over the home service, fitness, and beauty sectors. Rolling these into a “brand name” streamlines marketing and advertising efforts, as well as operational synergies.

Cutting expenses is important, but meaningful cuts would only be made in the areas previously mentioned - Social Security, Medicare/Medicaid, and defense. To the President’s credit, he has expressed a desire to negotiate with China, Russia, and others to engage in coordinated defense spending cuts. Regarding Social Security and Medicare/Medicaid, the electorate is still not in a position to support a mature conversation, unfortunately.

While portfolio diversification strategies aimed at dedicating 45% to alternatives is not for every individual 401(k) holder, somewhere between 10 and 20% is reasonable. Empower is the second-largest provider of US workplace retirement plans. Earlier in May, the company announced a multi-partner deal with the private investing behemoths Partners Group and Apollo Global Management among others to begin allowing private equity, credit, and real estate in some of the accounts Empower manages. 401(k) plans typically hold public stocks and bonds, and many employers have been reticent to wade into private investments due to liquidity constraints and the valuation learning curve. Portfolio diversification strategies, however, are leading the change with five companies already signed on with Empower.

The S&P 500 plummeted more than 10% over the subsequent three days, and at its lows, the index was down 19% from February record highs. Investor anxiety was through the roof, as retirees watched their relatively secure portfolios get hammered. The President quickly shifted, announced the 90-day pause, and the rollercoaster shifted in the opposite direction. The market has recovered with the S&P 500 and Nasdaq 100 now positive for the year. A constructive trade deal with the United Kingdom and advanced conversations with China on lowering tariffs have also bolstered investor confidence. But it would behoove the President to take into consideration the long-term effects of elevated tariffs. His base support is seeking economic security.

Valuations of art have moved into more affordable price brackets over the past two years. In 2023, transactions on works valued from $100,000 to $1 million increased by 21% compared to 2022.6 The lower the price bracket, the greater the volume, with 90% of transactions involving pieces priced under $12,000.

A July 2023 survey found that 72% of respondents felt an online degree was more reputable than five years prior. The biggest perceptual shift was among Generation Z participants, a data point that was somewhat surprising. Online degree growth typically came from working students or non-traditional students who had taken time off and returned to school. Yet, the fact that a younger cohort was now coming around to pursue a higher degree online was completely new.

Former NBA star Kendrick Perkins was known as an enforcer for the Boston Celtics. He no longer patrols the hardwood, having now transitioned into running the company, Nilly, alongside veteran Wall Street investor Chris Ricciardi. Nilly offers student athletes upfront money for the exclusive rights to sell or use the athlete’s NIL. During a period of up to 7 years, Nilly and its investors receive anywhere between 10% and 50% of the athlete’s earnings.

In June, venture capitalist David Sacks held a swanky fundraiser for the former President in his Pacific Heights, San Francisco mansion. Guests paid up to $300,000, with rumored attendees spanning the C-suites of some of the U.S.'s largest crypto and blockchain companies. Meanwhile, it didn’t take much work for Trump’s team to compile a list of the regulatory crackdowns occurring at the hands of the Securities and Exchange Commission Chair, Gary Gensler. A Biden appointee, Gensler has sued crypto companies for violating securities laws and sought to dissuade banks from serving crypto companies.

In addition to the regulations, banks were also constrained from making further loans to developers. President Xi assumed these short-term band-aids could stave off a pending disaster, but in August 2021, the country’s second-largest property developer, the Evergrande Group, promptly halted construction. Overdue payments were at the core of the stoppage, and the following month, Evergrande missed two offshore bond coupon payments for a total of $131 million.