Hi friend 👋🏼

This week, we’re looking at the market buzz around rare Lamborghini Miuras and rising Swiss watch exports. Plus, tokenization is finally heading to the big leagues, and national debt continues to push asset prices higher. Let’s get started!

The Weekly Fun Fact 🤔
A collection of Lamborghini Miuras, recently discovered in a Los Angeles junkyard, is headed for auction. These iconic pieces, part of the late Rudi Klein's secret car collection, are expected to sell for up to $2 million at RM Sotheby's auction this October. One standout is a rare 1968 Miura P400, still boasting its original V-12 engine, with experts estimating that it could fetch between $500,000 and $700,000. With collectors excited and restoration plans underway, these legendary cars are about to make a huge comeback.

‍

🔴 Swiss watch exports rise, but outlook for 2024 remains cautious ⌚

The Swiss watch industry is experiencing mixed signals. Despite a 6.9% rise in Swiss watch exports last month, the outlook for 2024 is still negative, according to the Federation of the Swiss Watch Industry. Two crucial markets for Swiss watches are showing signs of strain. Exports to China dropped by 6%, while Hong Kong experienced an even sharper 11% decline. Adding to these challenges is the strong Swiss franc, which can make Swiss timepieces less competitive internationally

The industry is also seeing a performance split where high-end watches continue to sell well, but mid-range and entry-level timepieces are struggling. This split highlights the complex landscape Swiss watchmakers are navigating. 

‍

🟡 National debt has boosted prosperity and stock growth 📈

Over the last two centuries, we’ve seen something interesting: as national debt has gone up, extreme poverty has dramatically decreased. In fact, the poverty rate has dropped from 50% to 9% in the past 225 years, largely fueled by debt-financed economic growth. 

While there are long-term risks to such high levels of debt, one clear benefit has been rising asset prices. We’re seeing Stocks, Bitcoin, and real estate reaching all-time highs, and with the recent Federal Reserve rate cuts boosting growth even further. For now, it seems debt is fueling both prosperity and financial gains. It’s a complex picture, but one with some notable positives in the short term.

‍

🟢 Crypto’s real-world assets are ready for prime time 🏦

Tokenization is moving from theory to practice in the financial world. By the end of the year, a Global Markets Advisory Committee (CFTC) subcommittee will offer legal and regulatory guidance on using blockchain for non-cash collateral transfers. This could pave the way for tokenization in mutual funds, bonds, and more. 

Financial giants like BlackRock and Citigroup are already exploring this technology, with experts at McKinsey predicting the tokenized market could hit $2 trillion by 2030.

‍

🎬 That’s a wrap! From hidden Lamborghinis to crypto tokenization going mainstream, this week has been full of interesting discoveries. Stay tuned for more updates next Friday.