Good Morning! Markets are tanking around the world on the back of potential tariffs, with China firing back with retaliatory measures and export restrictions. Jerome Powell warned that inflation is likely to rise due to the tariff tensions, and both Klarna and StubHub are putting their IPO plans on hold amid the uncertainty.

Trump officials say more than 50 countries have expressed interest in new trade deals. Buffett the GOAT looks vindicated for building a $300 billion cash pile at Berkshire, and TikTok gets another lifeline with a 75-day extension, though China just pulled out of the deal.

Plus: Prada hires Goldman Sachs for its Versace bid, JPMorgan turned from one of Wall Street’s biggest bulls to bears in 72 hours, and Musk breaks with the administration over tariffs.

Smart home tech is booming—here’s your chance to invest in it.

_{SQUEEZ OF THE DAY}

Black Monday

When hedge fund billionaire Bill Ackman does a full 180 on the White House in just two days, it’s not exactly a bullish signal. After initially backing the administration, Ackman flipped and publicly called out Commerce Secretary Howard Lutnick for a conflict of interest, claiming that Lutnick's firm, Cantor Fitzgerald, is long on bonds and stands to profit massively when the "economy implodes." ​

Markets are Tarrif-ied

From Shanghai to London, investors dumped risk like it was 2008. Europe’s Stoxx 600 plummeted 6%, Asia’s benchmark index posted its steepest loss since the financial crisis, and S&P 500 futures are pointing to a brutal 5% drop when Wall Street opens. Treasuries surged, sending the 10-year yield down to 3.9% as investors fled to safety.​

In a press conference Sunday night, President Trump made it clear: "Forget markets for a second." He doubled down on tariffs and said he wouldn’t consider lowering them unless the U.S. trade deficit with that country is eliminated. "I don’t want anything to go down, but sometimes you have to take medicine to fix something," he added. ​

Meanwhile, U.S. streets filled with protests over the weekend as Americans watched over $5 trillion in market value evaporate in 48 hours, with more pain expected if there’s no intervention. ​

So, What Now? Is There Any Way to Hedge Against This Chaos?

• Put Options: Buying puts on stocks or indices can pay off in sharp selloffs, but only risk what you can afford to lose.

• Inverse ETFs: These go up when the market goes down. Best for short-term hedging, not long-term holds.

• Safe Havens: Gold and Treasuries remain classic flight-to-safety assets when risk is off.

• Quality Bonds: Investment-grade bonds can provide stability and yield while equities stay volatile.

• Roth Conversions: With asset prices down, converting to a Roth IRA now means less tax, and future gains grow tax-free.

• Defense & Nuclear Stocks: These sectors may hold up better amid geopolitical or tariff-induced turmoil.

• Avoid FOMO: Don't blindly buy the dip just because Reddit says so. Stick to your long-term plan.

• Hold Cash: Sitting on cash might not feel exciting, but it gives you optionality and keeps you sane.

Takeaway: The largest single-day market drop occurred on October 19, 1987, with a 22.6% decline, while during the COVID-19 pandemic, the market fell 12.9% on March 16, 2020. With Trump doubling down on his stance, brace for a Black Monday ahead. Stay hydrated, and remember: this is probably the worst it will ever get, unless, of course, it gets worse.​

_{PRESENTED BY RYSE}

A Repeatable Playbook?

Venture capitalists know how difficult it is to spot early investment opportunities – just ask the Sharks from Shark Tank. They passed on Ring at just $700,000, only to watch it sell to Amazon for $1.2B – a 1700x return missed.

Now, there’s a new smart home start-up following the same blueprint: meet RYSE.

The founder pitched on Canada’s Shark Tank, secured two offers, and now their patented smart shades are sold in 127 Best Buy stores, Amazon and Walmart – with Home Depot launching in 2025.

Ring used retail expansion to dominate smart security. RYSE is using the same playbook to disrupt the smart shade market inside the $158B smart home industry.

You can invest at just $1.90/share – and receive up to 25% in bonus shares.

_HEADLINES

Top Reads

• Powell: Inflation likely to go up (CNBC)

• China strikes back at Trump with own tariffs, export curbs (YF)

• Tariffs delay Klarna, StubHub IPOs (CNBC)

• Trump's economic adviser says 50 countries have reached out to negotiate tariffs (ABC)

• Warren Buffett no longer needs to defend his $300B cash pile (YF)

• TikTok saved again as Trump extends ban deadline (Axios)

• Prada reportedly taps Goldman Sachs to advise on $2.5B Versace bid (NYP)

• As tariff sell-off deepens, here's what to know before trying to 'buy the dip’ (CNBC)

• Private equity stocks feeling the pain and then some (WSJ)

• JPMorgan raises recession odds this year to 60% (CNBC)

• The democratization of private equity is happening, like it or not (PEI)

• McKinsey says tariffs will disrupt corporate profits and supply chains (WSJ)

• Actively managed ETFs hit $1 trillion milestone (CNBC)

• US economy adds 228,000 jobs in March, unemployment rate rises to 4.2% (YF)

• Elon Musk says he wants a 'zero-tariff situation' (NBC)

_{CAPITAL PULSE}

Markets Rundown

Markets Tank, Jobs Strong

Equities Plummet: China’s 34% tariffs on U.S. goods, effective April 10, retaliated against Trump’s 54% hike on Chinese imports. Equity markets sank—Nasdaq and small-caps hit bear territory.

SPY closed at 505, reflecting a broader S&P 500 loss of 9% for the week. Japan’s Nikkei fell 2.75% facing 24% U.S. duties, while European banks dragged markets down on growth fears.

Jobs Beat Expectations: March nonfarm payrolls rose 228,000, topping estimates of 130,000, though prior months were revised down by 48,000. Health care and retail added 78,000 jobs.

Unemployment ticked up to 4.2%, wages grew 3.8% annually, below the expected 4.0%. Labor market stayed solid pre-trade tensions, but future risks loom.

Bond Yields Slide: 10-year Treasury yield hit 4%, a six-month low, as markets price in four Fed rate cuts this year—double the Fed’s two-cut forecast.

Trade tensions signal slower growth, but with unemployment low and PCE inflation at 2.5% (above the 2% target), the Fed may hold steady to assess tariff impacts.

Diversify to Survive: Stocks are in correction, down 10% from highs, with recovery delayed by trade uncertainty. Industrials, tech, and consumer discretionary face tariff risks; financials, utilities, and real estate are safer.

Diversified portfolios with international stocks, mid-caps, and bonds have outperformed concentrated U.S. large-cap holdings. It might be a good idea to stick to long-term strategies—as opposed to panic-selling.

Despite headwinds, low unemployment, Fed rate cuts, and potential pro-growth policies like tax cuts offer hope.

Movers & Shakers

• (+) GameStop ($GME) +11% after the meme stock company’s CEO bought 500k shares.

• (–) Nvidia ($NVDA) -7% because of the chipmakers’ exposure to China.

• (–) Boeing ($BA) -9% after reports tariffs could drive up the cost of aircraft products.

Private Dealmaking

• Brookfield acquired the Colonial Pipeline for $9 billion

• Neurona Therapeutics, a neural circuits biotech, raised $102 million

• Redpanda, a data streaming startup, raised $100 million

• Hydrolix, a data lake startup, raised $80 million

• Felix, a cross-border remittances platform, raised $75 million

• Solace, a healthcare navigation solutions provider, raised $60 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

Chokepoints

It used to be that ravaging another country’s economy required blockading its ports and laying siege to its cities. Now all it takes is a statement posted online by the U.S. government.

In Chokepoints, Edward Fishman, a former top State Department sanctions official, takes us deep into the back rooms of power to reveal the untold history of the last two decades of U.S. foreign policy, in which America renounced the gospel of globalization and waged a new kind of economic war.

As Vladimir Putin, Xi Jinping, and Ayatollah Khamenei wreaked havoc on the world stage, mavericks within the U.S. government built a fearsome new arsenal of economic weapons, exploiting America’s dominance in global finance and technology.

Successive U.S. presidents have relied on these unconventional weapons to address the most pressing national-security threats, for good and for ill.

Chokepoints provides a thrilling account of one of the most critical geopolitical developments of our time, demystifying the complex strategies the U.S. government uses to harness the power of Wall Street, Silicon Valley, and Big Oil against America’s enemies.

At the center of the narrative is an eclectic group of policy innovators: the diplomats, lawyers, and financial whizzes who’ve masterminded America’s escalating economic wars against Russia, China, and Iran.

Economic warfare has become the primary way the United States confronts international crises and counters rivals. Sometimes it has achieved spectacular success; other times, bitter failure.

The result we live with today is a new world order: an economic arms race among great powers and a fracturing global economy. Chokepoints is the definitive account of how America pioneered this new, hard-hitting style of economic war—and how it’s changing the world.

“Remarkable...One of the most important books on economic warfare ever written.”

_{DAILY VISUAL}

Stock Market's Tariff Rout

_{PRESENTED BY PACASO}

Disrupting the $1.3T Vacation Home Market

When the team that co-founded Zillow and grew it into a $16b real estate leader starts a new company, investors notice. That's why top firms like SoftBank invested in Pacaso.

Pacaso is transforming the $1.3T vacation home market through a sleek co-ownership model, making second homes more accessible than ever. 

They’ve already generated $100M+ in gross profits and helped over 1,500 homeowners unlock luxury living.

Now, the company is focused on international expansion – achieving record-breaking sales in Paris, securing 7 homes in Cabo, and recently acquiring their most valuable European property yet in London.

The best part? You can join them as an investor for just $2.80/share right now. Grow with Pacaso as an investor today.

_{DAILY ACUMEN}

Why Employees Quit

Employees leave because they crave ownership—a need summed up in eight words: “I want to take ownership of my work.”

Turnover can cost 50-200% of an employee’s salary, and many plan to exit within a year.

To fix this, treat employees like business partners, not cogs. Hire entrepreneurial types—proactive, curious, unafraid to challenge norms.

Then empower them: cut rules to spark creativity, help them act on ideas by connecting them to resources, celebrate their initiative, share the big picture to align their efforts, and foster open dialogue for trust.

Let them make decisions, flatten hierarchies, and lead.

Ownership builds a high-performing culture—micromanaging kills it.

Start now, or watch your best people walk.

_{ENLIGHTENMENT}

Short Squeez Picks

• How to recession-proof your finances

• A three-step process to investing a lot of money wisely

• How separating your personal and professional identities maximizes growth 

• Does walking build muscle?

• You don’t need a mentor to get the career advice you need

_{MEME-A-PALOOZA}

Memes of the Day