Good morning, investors. Today we’re covering, Trump’s tariff war 1.0 vs. 2.0, OpenAI’s evolving ownership, the most undervalued U.S. stocks for Q4, and much more.
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This Week’s Top Stories

NEED TO KNOW
Trump Tarrif War 1.0 Vs. 2.0
The S&P 500’s reaction to Trump’s 2025 tariffs looks eerily similar to the first trade war in 2018 — an early stumble followed by a rebound. But this time, inflation and interest rates are far higher.
Back in 2018, growth was strong, inflation low, and the Fed accommodative. In 2025, the backdrop’s tougher: higher rates, sticky inflation, and supply chains still strained. Yet markets are again betting on the idea that U.S. companies can adapt just like before.
But if that bet fails — if higher costs eat into margins and consumers pull back — it won’t be pretty.

NEW STOCK IDEA
Who Owns OpenAI?
After the latest restructuring, OpenAI’s ownership is shifting fast — blurring the line between mission-driven research and big-money control.
OpenAI is moving away from its original “capped-return” model — where investor profits were limited — toward traditional equity stakes that remove those caps entirely. Investor upside is now tied directly to valuation growth and share sales.
What began as a nonprofit lab is becoming a high-stakes, profit-driven enterprise — one where some of the world’s most powerful investors now have a direct claim.

CHART OF THE WEEK
Amazon Hits 10-Year Low
After years of being priced for perfection, Amazon’s valuation is now sitting at a decade low—even as its business keeps expanding.
Amazon ($AMZN) is trading near a 10-year low on its EV/EBIT multiple, despite posting strong growth across revenue and operating cash flow. Over the last five years, the company’s revenue is up +108% and operating cash flow +137%.
Yet its valuation multiple has steadily compressed to around 32× EBIT—levels not seen since 2016. Whether it’s a buying opportunity or a sign of a maturing growth phase, one thing’s certain—Amazon is no longer priced like a rocket ship.

NEW STOCK IDEAS
Tech Stocks Are History
Morningstar’s latest undervalued list shows only 15% of opportunities are in tech. The rest? Industrial, energy, and old-school cash machines.
For years, tech dominated every “best buys” list. Not anymore. Slower growth and bloated valuations have cooled enthusiasm for software and chips, while industrials and consumer staples quietly take the lead.
Investors aren’t chasing innovation right now—they’re buying resilience. Whether this marks the start of a new value cycle or just a breather for tech remains to be seen.

HISTORY LESSON
-22.6% In One Day
October 19, 1987 — Black Monday. The Dow Jones crashed 22.6% in a single day, marking the biggest one-day drop in U.S. history. Could it happen again?
Back then, rising rates, trade deficits, and valuation fears set the stage. The real trigger? Early automated trading systems. Once stocks started falling, computer-driven sell orders snowballed — turning a correction into a collapse.
Today, circuit breakers, tighter rules, and fast-acting central banks make a repeat less likely. But with leverage, momentum trading, and AI funds steering the market, the echoes of 1987 still linger. The systems are smarter — the emotions aren’t.
WHAT WE’RE WATCHING
Other Big Things Going On
🌍 Global Banks Slide on fears over bad loans.
🥇 BofA sees gold at $5,000 by 2026.
📈 Margin Debt hits record $1.13T.
💳 Amex beats Q3 estimates, raises guidance.
💉 Eli Lilly drops as Trump targets $150 GLP-1 cap.