Markets in Freefall

In this issue of the peel:

• ?? Market meltdown continues. After a brief bounce, major indices plunged amid escalating recession fears.
• ??Tesla's stock nosedived, dragging the Nasdaq (and Elon’s net worth) deeper into the abyss.
• ?? The US Energy Secretary provided some much-needed relief for the markets, suggesting that the US and Canada could soon strike a tariff deal.

Market Snapshot

Banana Bits

• We’re grasping for straws on positive news here, but US Energy Secretary Chris Wright said a deal between the US and Canada is “possible.” It ain’t much, but I’ll take it.
• Donald Trump didn’t explicitly rule out the possibility of a recession in the short term, leading to a $1 trillion stock wipeout.
• Elon Musk’s net worth is taking a massive hit while working in the government. Maybe he is a public servant after all!
• A new rebrand just dropped. Recessions are for old-school boomers. Now, we call them “economic transition periods.”
• Cracks in the travel economy are starting to take shape as Delta cuts profit outlook.

The Daily Poll

If bond yields keep falling, what should the Fed do?

• Stay hawkish
• Cut rates ASAP
• Wait and watch
• Fed has no clue

Previous Poll:

Is Amex’s acquisition of Center a game-changer?

Yes, fintech evolution: 28% // No, just keeping up: 21% // Depends on execution: 25.5% // Too early to tell: 25.5%

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Macro Monkey Says

The Great Bond Rush: Investors Run for Cover

When stocks get scary, investors do what they do best—panic and sprint to bonds like they're giving away free tendies. That’s exactly what happened yesterday.

The 10-year Treasury yield took a nosedive of 9.3 basis points to 4.2%, while the 2-year yield slipped 10.4 bps to 3.9%. Translation? Investors are hoarding Treasuries like doomsday preppers hoard canned beans.

Source

Why the sudden rush? Well, a perfect storm of bad vibes—from the Fed’s mixed signals on rates to lingering recession fears—has traders playing defense. On top of that, President Trump’s latest tariff policies have Wall Street clutching its pearls, worrying about slower growth and rising costs.

It’s not just the bond market flashing warning signs. The US dollar dipped 0.5% against the Japanese yen, another favorite hiding spot when things get ugly. That’s like your richest friend quietly moving all their cash to Switzerland—probably not a great sign.

But let’s be real—this isn’t the first time we’ve seen this movie. Investors freak out, pile into bonds, then act surprised when yields fall. It’s the financial equivalent of touching a hot stove and yelling, "Ouch, why does this keep happening?!"

So what’s next? If bond yields keep sliding, the Fed might have to rethink its hawkish stance. But for now, the market’s saying one thing loud and clear: safety first, profits later.

Career Corner

Question

I am applying for an Equity Research role (that I believe fits me well despite focusing on IB). The position is 1 week old and has over 100 applicants; would I stand out if I wrote an interest statement as asked by LinkedIn?

Answer

I don’t have a strong view on these LinkedIn applications, but I assume marking one as your top choice can’t hurt.

But also, importantly, you should be networking! That will likely have a bigger impact than whether or not you check this box.

And strong interview prep with a strong stock pitch will go a long way! (Also, as an aside, you can’t trust the number of applications on LinkedIn—some submissions are completely unqualified, and some are bots.)

Head Mentor, WSO Academy

Check out WSO Academy

What's Ripe

Redfin (RDFN) 67.9%

• Shares took some rocket fuel after Dan Gilbert’s company announced a $1.75 billion acquisition.
• Investors are optimistic about an all-in-one home buying platform.
• After years in the red, Redfin finally gets some game-changing news.

Regeneron Pharmaceuticals (REGN) 5.3%

• While markets flail, biotech remains a rare pocket of strength as investors seek defensive plays amid market volatility.
• Regeneron released positive trial data, boosting confidence in upcoming drug launches.
• Market turbulence? More like market immunity for REGN.

What's Rotten

Tesla (TSLA) 15.4%

• Elon Musk has truly turned into a public servant, losing his wealth for the sake of political aspirations.
• Political controversies create investor uncertainty, while price wars threaten to squeeze EV margins as competition intensifies.
• Tesla’s stock didn’t just dip—it skidded off the road.

Robinhood Markets (HOOD) 19.8%

• FINRA fined Robinhood $26 million for violations, including inadequate anti-money laundering practices.
• An additional $3.75 million is to be paid to select customers as restitution, hurting the brand’s reputation.
• Shares plunged nearly 20%, reaching their lowest levels since November.

Thought Banana

Cav’s Pwner Takes A Shot At Real Estate Investing??

Dan Gilbert isn’t just building NBA championship teams—he’s building a real estate empire, too. Rocket Companies, the mortgage giant owned by the Cleveland Cavaliers’ boss, just made a $1.75 billion all-stock deal to acquire Redfin, the popular real estate platform.

Source

The goal? A full-court press on the housing market. By combining Redfin’s massive home-search platform with Rocket’s mortgage services, the company hopes to create a one-stop shop for homebuyers—from browsing listings to getting a loan, all in one place.

Redfin investors? They're partying like it's 2016, with the stock soaring 70% on the news. Rocket’s shareholders? Not so much. The stock dropped 14%, as Wall Street worries whether this move will actually pay off or just add more pressure in a shaky housing market.

Source?

It’s a bold strategy—will it pay off? The real estate game has changed, with higher mortgage rates slowing demand. But if Rocket can pull this off, it could reshape how Americans buy homes.

For now, Gilbert is betting big—because in business, just like in basketball, sometimes you have to take the deep three.

The Big Question: Is this the future of home buying, or is Gilbert just making a high-risk play in a tough housing market?

Banana Brain Teaser

Previous

If x(2x + 1) = 0 and (x + 1/2)(2x - 3) = 0, then x = ?

Answer: -1/2

Today

For the positive number, n, n + 1, n + 2, n + 4, and n + 8, the mean is how much greater than the median?

Send your guesses to [email protected]

It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.

George Soros

How Would You Rate Today's Peel?

?? All the bananas

?? Meh

?? Rotten AF

Happy Investing,

Chris, Vyom, Ankit & Patrick