💼 Expedition Index: Compass & Capital

Dr. Livingstone once remarked that the only way to explore was "forward” (…financially). Had he been navigating today's markets instead of the Zambezi, he might have added "and keep your stop-losses tight." This week's financial safari features Goldman Sachs backtracking through political jungles, Elon Musk attempting to map the Fed's territory, and Anduril snatching prey from Microsoft's jaws. Pack your provisions carefully – even eggs have become rare specimens.

Goldman Sachs Drops Diversity Pledge

Story Goldman Sachs has quietly ended its IPO diversity pledge, which required companies going public to have at least one diverse board member. The move comes amid pressure from Trump’s administration, which has been vocal about rolling back corporate DEI initiatives.

What that means The retreat signals a broader shift in corporate America as companies brace for a more conservative regulatory environment. Expect more firms to follow suit, especially those eyeing IPOs in a Trump-friendly market.

Point of Interest Goldman’s reversal is a stark reminder that politics and finance are inextricably linked. Whether this is a step forward or backward depends on your perspective—and your portfolio.

Stock Picks

• Low Risk: JPMorgan ($JPM) – A stable player in a shifting regulatory landscape.

• Medium Risk: Goldman Sachs ($GS) – A speculative play on its pivot away from DEI.

• High Risk: Coinbase ($COIN) – A crypto play that could benefit from Trump’s pro-crypto policies.

• Wildcard: Robinhood ($HOOD) – A retail favorite that could see volatility as regulations shift.

Elon Musk vs. the Fed: Audit on the Cards?

Story Elon Musk has called for a Federal Reserve audit, claiming the institution is “absurdly overstaffed”. Fed Chair Jerome Powell swiftly rejected the idea, but the debate has sparked conversations about the Fed’s transparency and efficiency.

What that means Musk’s critique could fuel broader scrutiny of the Fed, especially as inflation remains a hot-button issue. While an audit is unlikely, the discussion could pressure the Fed to streamline operations.

Point of Interest When Elon Musk talks, markets listen—even if the Fed doesn’t. This could be the start of a larger push for financial reform.

Stock Picks

• Low Risk: Berkshire Hathaway ($BRK.B) – A safe haven in uncertain times.

• Medium Risk: Tesla ($TSLA) – A bet on Musk’s influence.

• High Risk: MicroStrategy ($MSTR) – A crypto proxy that could benefit from Fed scrutiny.

• Wildcard: ARK Innovation ETF ($ARKK) – A high-risk play on disruptive innovation.

  

Anduril Takes Over Microsoft’s $22 Billion Program

Story Defense tech startup Anduril has snatched Microsoft’s $22 billion contract to develop augmented reality headsets for the U.S. Army. The move marks a significant shift in the defense sector, as startups challenge traditional contractors.

What that means Anduril’s win is a testament to the growing influence of tech startups in defense. Expect more disruption as innovation outpaces bureaucracy.

Point of Interest The defense sector is no longer the exclusive domain of legacy players. Anduril’s rise could herald a new era of military tech.

Stock Picks

• Low Risk: Lockheed Martin ($LMT) – A stable defense giant.

• Medium Risk: Palantir ($PLTR) – A tech-driven defense play.

• High Risk: Anduril (Private) – If you can get in, this could be the next big thing.

• Wildcard: Kratos Defense ($KTOS) – A speculative play on defense innovation.

SoftBank’s Investments Slip Into the Red

Story SoftBank posted a surprise Q3 loss as its Vision Fund investments underperformed. The tech conglomerate’s bets on startups like OpenAI and WeWork have yet to pay off, raising questions about its strategy.

What that means SoftBank’s struggles highlight the risks of high-stakes tech investing. While the potential rewards are enormous, so are the pitfalls.

Point of Interest Masayoshi Son’s Vision Fund has always been a high-wire act. Will this loss force a rethink, or double down?

Stock Picks

• Low Risk: Berkshire Hathaway ($BRK.B) – A conservative alternative to SoftBank’s high-risk bets.

• Medium Risk: Alibaba ($BABA) – A SoftBank-backed play with more stability.

• High Risk: SoftBank Group ($SFTBY) – A speculative play on a potential turnaround.

• Wildcard: OpenAI (Private) – If you can get in, this could be a game-changer.

Egg Limits at Major Grocers: The Latest Supply Chain Snafu

Story Major grocers are enforcing egg purchase limits as supply chain disruptions and avian flu outbreaks strain supplies. The move has sparked panic buying and raised concerns about food inflation.

What that means Eggs are the latest casualty of global supply chain issues. Expect higher prices and potential shortages in other staples as well.

Point of Interest When eggs become a luxury, you know the supply chain is in trouble. This could be a sign of broader inflationary pressures.

Stock Picks

• Low Risk: Walmart ($WMT) – A retail giant that can weather supply chain storms.

• Medium Risk: Tyson Foods ($TSN) – A play on protein demand.

• High Risk: Cal-Maine Foods ($CALM) – A direct bet on egg prices.

• Wildcard: Beyond Meat ($BYND) – A speculative play on alternative proteins.

Roundup: The Week’s Other Headlines

While the big stories grabbed the spotlight, here’s a quick rundown of the other notable happenings this week:

1. JPMorgan Employees Revolt Against 5-Day Office Rule
   JPMorgan employees are petitioning against the bank’s return-to-office mandate. Will Wall Street’s work-from-home revolution continue?

2. Wall Street Warms Up to Crypto
   Banks like Morgan Stanley and Bank of America are diving into crypto, lured by Trump’s pro-crypto policies and Bitcoin’s record highs.

3. BlackRock Eyes LBO Financing
   The asset management giant is making a play for leveraged buyout financing, signaling its ambitions in private markets.

4. Oaktree Raises Largest-Ever Distressed Debt Fund
   Oaktree’s $16 billion fund is a bet on economic turbulence. Will it pay off?

5. Emerging Markets Feel the Heat
   Tariffs and economic woes are hammering emerging markets, with India’s NIFTY 50 hitting an eight-month low.

Wrapping up

As our expedition concludes, we're reminded that Livingstone spent years searching for the source of the Nile. Today's market explorers face similar quests, though their holy grail tends to be priced in basis points rather than geographic coordinates. And, like Victorian maps, our market insights come with blank spaces marked "here be dragons." Plan accordingly.

Sincerely,
The Briefcase Team

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