Trump pressures the Federal Reserve again; Kevin Hassett denies taking over Tim Cook’s post, says September may either hold rates steady or cut them.

Grayscale Research Head Zach Pandl stated in a new report that global investors are gradually reducing their reliance on traditional stocks and bonds, with alternative assets emerging as a key component of investment portfolios—a trend that could drive long-term growth for crypto assets. The report notes that since the 2008 global financial crisis, the global alternative assets market has grown nearly sevenfold. Private equity, private credit, hedge funds, physical assets, and crypto assets have seen their share in global investment portfolios continue to rise. In terms of generational allocation preferences, younger investors show a more pronounced interest in alternative assets. A Bank of America survey of high-net-worth investors found that those aged 21 to 43 allocate an average of 53% of their portfolios to assets outside traditional stocks and bonds, compared to just 26% for investors aged 44 and above. Grayscale projects that over $100 trillion in wealth will transfer to the younger generation in the coming years, and this alternative asset-preferring investment habit could serve as a key long-term support for the crypto market. The report identifies lower investment thresholds as a key driver of alternative asset growth: with the emergence of new financial products and trading platforms, investors no longer need to rely on complex infrastructure or specialized expertise to participate in alternative asset investments. The crypto market has undergone a similar evolution, with regulated Bitcoin ETFs/ETPs and institutional-grade market infrastructure offering investors more convenient and familiar allocation channels. Grayscale concludes that the rising allocation of alternative assets among younger investors, especially their growing acceptance of crypto assets, could fuel further expansion of the crypto asset class.

As of August 7, the S&P 500’s Shiller Price-to-Earnings Ratio (CAPE) rose to 42.39 times, far exceeding its long-term average of 17.40 times. It is only lower than the historical peak of 44.19 times during the dot-com bubble and surpasses the 32.56 times valuation level before the 1929 Great Crash. Currently, the CAPE has entered the extreme range where it exceeds 40 times for only the second time in history. Analysts note that the CAPE metric is primarily used to measure long-term investment return expectations, not to predict short-term market tops. Almost all historical cases where the CAPE exceeded 40 times were concentrated in the 1999-2000 dot-com bubble period, so one cannot simply infer that U.S. stocks will inevitably enter a "lost decade" in the next ten years based on a single bubble cycle. However, high valuations mean the long-term valuation buffer of U.S. stocks is shrinking. Future market returns will depend more on corporate earnings consistently exceeding expectations, rather than further valuation expansion. Market participants believe that productivity gains, margin improvements and corporate earnings growth brought by the artificial intelligence (AI) wave could help sustain high valuations for a longer period. But if AI earnings fall short of expectations or real interest rates continue to rise, the high valuation environment could amplify market correction pressures. The core signal from the CAPE is that U.S. stocks’ expected returns over the next decade may face downward pressure, but this metric does not directly mean U.S. stocks are about to peak, nor can it infer that actual returns over the next ten years will definitely be negative. (Jinshi)

A government record shows that Federal Reserve Chair Walsh has sold all the financial assets he pledged to divest. Walsh signed a compliance certification for an ethics agreement with the U.S. Office of Government Ethics (OGE) last Thursday, and the document was published on the agency’s website on Saturday. Walsh had previously submitted a divestment certification to the OGE, indicating he had sold most of the assets he committed to divest. The latest disclosure document confirms he has sold the remaining holdings covered by the agreement. Walsh is one of the wealthiest officials in Federal Reserve history. He pledged to divest his stakes in multiple investments; the underlying assets of these investments were not disclosed due to non-disclosure agreements, with some valued at at least $100 million. (Source: Jin10)

Storage chip maker SanDisk recently saw its stock price pull back after its earnings guidance missed expectations, but institutions believe AI-driven storage demand will underpin the company’s long-term growth. Argus Research analyst Jim Kelleher upgraded SanDisk’s rating from “Hold” to “Buy” and set a 12-month target price of $1,600. He explained that when his team initiated coverage in July, they were waiting for a better buying opportunity, and now that the stock has dropped sharply from its peak, the investment window has opened. SanDisk hit an all-time high of $2,335 on June 25 and has since declined, currently down roughly 47% from that peak. Last week, following the release of its quarterly results, the stock fell 6.8% in a single day as future performance guidance fell short of market expectations, with an additional 3.7% drop afterward. Kelleher holds that SanDisk is in the early stages of a multi-year cycle of accelerating revenue growth and expanding profit margins. As AI data center construction drives a surge in storage demand, major cloud computing firms including Amazon, Meta, and Alphabet (Google’s parent company) continue investing hundreds of billions of dollars in infrastructure, widening the supply-demand gap for storage components. He projects that the company’s profit margins will rise further, as its revenue growth significantly outpaces cost increases. To date, SanDisk’s stock has gained about 422% year-to-date and 2,757% over the past 12 months. Despite the recent sharp pullback, institutions believe the AI infrastructure investment cycle will provide new growth momentum for the company.

According to Bitget market data, WTI crude oil gained 5.00% intraday, now trading at $80.17 per barrel. Brent crude oil rose 5.00% intraday, at $85.58 per barrel. On the news front, Iran’s Ministry of Foreign Affairs reaffirmed that the U.S.-imposed maritime blockade on Iran constitutes an act of aggression against the country. The U.S.-Iran conflict has recently reached an impasse.

August 10 Update: #Bitcoin ETFs: 1D NetFlow: +1,731 $BTC(+$111.94M)?? 7D NetFlow: +12,354 $BTC(+$798.68M)?? #Ethereum ETFs: 1D NetFlow: +29,914 $ETH(+$56.78M)?? 7D NetFlow: +118,521 $ETH(+$224.97M)??