5 Things We Learned This Week - 05/31/2025
May 31, 2025
The S&P 500 rose 1.9% this week. The Bloomberg Aggregate Bond Index rose 0.9%, while Gold fell 2.0% and Bitcoin fell 3.8%.
Consumer confidence rose to 98.0, yet financial stress lingers. Sentiment stayed depressed overall with future expectations near historic lows. Pending home sales dropped 6.3%, hinting at housing weakness. PCE inflation eased to 2.1%, but tariffs will likely spark higher prices going forward. High net worth investors should diversify and keep an eye on housing market risks.
Matt Barkley Hosts Bitcoin Conference Panel
The convergence of sports, finance, and digital assets was on full display at this week’s Bitcoin 2025 Conference in Las Vegas, where more than 30,000 attendees gathered to witness the next chapter in crypto’s evolution. Nowhere was this intersection more evident than in the panel hosted by Silverlight’s own Matt Barkley, former NFL quarterback, who brought together athletes and investors to discuss how Bitcoin is reshaping the playbook for wealth management and legacy building.
Barkley’s panel highlighted how professional athletes—accustomed to high-stakes decisions and long-term planning—are increasingly turning to digital assets like Bitcoin for financial security and generational wealth. The discussion revealed a growing trend: athletes leveraging their platforms to educate fans and peers about the advantages of decentralized finance, from transparency to autonomy.
As Bitcoin’s market cap continues to grow, the message from Las Vegas was clear: digital assets are no longer a niche investment. They’re rapidly becoming integral to both financial portfolios and the broader culture of sports.
“Sell in May” Myth Busted—Again
Contrary to seasonal wisdom, May delivered a blockbuster performance for equities. The S&P 500’s 6% monthly gain and the Nasdaq’s 9.5% surge defied the typical summer slowdown narrative. Investors looked past headline risks—be it tariffs, inflation, or political noise—and bet on the staying power of AI-driven growth.
Some ideas are sticky because they rhyme, not because they’re true. “Red sky at night, sailor’s delight” is easy to remember, but it won’t save you from a storm. The same goes for “Sell in May and go away.” It’s catchy, but 2025 just handed us another reason to ignore it.
History also tells a different story about why it's beneficial to be mostly invested most of the time: the S&P 500 has posted positive returns in about 59% of all months since 1928, and most months, including May, average a gain. The market rewards patience, not calendar-based superstition.
Warren Buffett Touts Passive Investing, But Is He Biased?
Warren Buffett is the GOAT for active investing. Ironically, he spends a lot of air time nowadays recommending people invest in passive indices like the S&P 500. This is despite the fact that Berkshire Hathaway still employs Buffett's two active investing lieutenants, Todd Combs and Ted Weschler. While nobody knows for sure except for him, Buffett's endorsement of passive investing, as highlighted in a 2020 article by Silverlight Asset Management, seems more self-serving than most people realize.
This week we learned Berkshire has a significant, yet opaque, investment in passive investing giant, BlackRock. This investment is a pass through via Berkshire's position in Bank of America. A video by Ian Carroll reveals that Berkshire holds a substantial stake in BlackRock, a connection not immediately evident in public disclosures. BlackRock, the world’s largest asset manager and a dominant force behind index funds, is significantly owned by Merrill Lynch—which itself is wholly owned by Bank of America. Berkshire Hathaway, in turn, is the largest institutional shareholder of Bank of America, holding over a billion shares worth $29 billion.
The Rising Risks of Private Equity
Private equity has become riskier than ever, as highlighted in a recent Wall Street Journal article. The piece discusses how the industry's growth has led to increased leverage, often burdening companies with debt that hampers long-term viability. Additionally, the lack of transparency in private equity deals makes it difficult for investors to assess true risks, unlike public markets. The article also notes that private equity's influence over critical sectors, such as healthcare and real estate, amplifies systemic risks, potentially destabilizing broader economies. Furthermore, the pressure for quick returns can lead to short-term strategies that undermine sustainable growth. These factors collectively suggest that private equity's current practices pose greater risks than in the past, necessitating caution from investors and regulators alike.
Abandoned Bear Cub Raised By Humans In Bear Suits
In the world of wildlife rehabilitation, innovation often springs from necessity. This week, a remarkable story from California’s Ramona Wildlife Center caught our attention: a two-month-old black bear cub, found alone and undernourished in Los Padres National Forest, is being raised by humans dressed head-to-toe as bears.
Why the costumes? To safeguard the cub’s wild instincts. Direct human bonding could doom his chances of survival upon release. So, staff don faux fur, masks, and gloves, carefully feeding and nurturing the cub through four daily enrichment sessions—sometimes even overnight. “He was extremely fragile when he arrived,” said Autumn Welch, the center’s wildlife operations manager.
Now, he’s thriving. The center’s approach underscores the delicate balance between intervention and respect for nature’s boundaries. As the cub prepares for a hopeful return to the wild, his journey reminds us that sometimes, the best solutions require us to see the world through another’s eyes—fur and all.
This material is not intended to be relied upon as a forecast, research or investment advice. The opinions expressed are as of the date indicated and may change as subsequent conditions vary. The information and opinions contained in this post are derived from proprietary and non-proprietary sources deemed by Silverlight Asset Management LLC to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Silverlight Asset Management LLC, its officers, employees or agents. This post may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any of these views will come to pass. Reliance upon information in this post is at the sole discretion of the reader.