📉 Everybody Panic

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☕️ GM Munchers! Yesterday we learned everything costs a fortune, and tonight Elon might unveil a flying car I absolutely cannot afford. So I’m emotionally somewhere between broke and amazed.

On today’s menu:

  • 📈 Inflation Is Hotter Than Expected

  • 🚗 Tesla’s Flying Car Moment Is Finally Here (Maybe)

  • 🥄 Warren Buffett Just Bought This Stock

  • 🏦 Bank Of America Just Got Slapped With A $1.2 Billion Fine

  • 👀 Blackrock CEO Just Said Something Interesting

Yesterday’s numbers:

S&P 500

7,718

-1.11%

Nasdaq

26,692

-1.88%

Dow Jones

51,621

-0.09%

Bitcoin

~$81,800

-1.62%

BREAKING NEWS

📈 Inflation Is Hotter Than Expected & Everybody Panicked

The big September inflation report landed yesterday and it came in higher than Wall Street wanted. Headline inflation hit 3.7% over the past year, above the 3.6% expected. Worse, core inflation, the number the Fed actually watches, rose to 2.6%, topping the 2.5% forecast. It’s only a small miss on paper, but in this market, small misses move mountains.

This matters a ton because a hot inflation number puts interest rate hikes right back on the table. Before the report, prediction markets saw only about a 15% to 20% chance of a rate hike at the October meeting. After the report, those odds exploded, jumping into the high 30s, with some measures pushing near 45%. That’s a massive swing, and it reset the whole mood overnight.

The reaction played out exactly how we called it in yesterday’s email.

  • 💵 The dollar climbed: The U.S. dollar jumped to an 18-month high, since higher rates make the greenback more attractive to hold.

  • 🥇 Gold got crushed: Gold dropped about 1.6% to below $4,100 an ounce, pulling it even further off its record high. When rates and the dollar rise, gold usually takes it on the chin.

  • 📉 Stocks fell across the board: The whole market pulled back as investors digested the fresh rate-hike fears.

The Munch Take: Alright, let’s go out on a ledge here. Our best guess is that the Fed still does not hike at the October meeting, even with these hotter numbers. But let’s be clear: this is a long-term opportunity, not a reason to panic. Remember, we were sitting at all-time highs, so there is absolutely nothing wrong with a little profit-taking. If you were planning to take some gains, this dip stings, we get it. But zoom out. Any pullback in the quality names on your watch list is exactly the kind of long-term opportunity we love. We stay patient and let the fear do the work. We’re keeping a close eye on Bitcoin to see if it dips below $80,000, and if anything else on our watch list starts looking interesting, you’ll be the first to know. Red days are shopping days. Keep your list ready.

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NEWS OF THE DAY

🚗 Tesla’s Flying Car Moment Is Finally Here (Maybe)

After nearly a decade of waiting, Tesla’s long-promised Roadster finally gets its big reveal Thursday night at 7:55 p.m. Central, streaming live from Waco, Texas. And this is not your typical car launch. There are real rumors that Elon Musk is about to make a car hover off the ground using rocket technology. Yes, you read that right.

Let’s start with the wait, because it’s genuinely something. Tesla first unveiled the Roadster prototype back in 2017 and promised production by 2020. It’s now late 2026, and the car still isn’t being built, with production pushed to 2027 or 2028. That’s roughly nine years of delays and counting. In classic Musk fashion, the timeline slipped and slipped, and the event itself got rescheduled from October 1 to October 15, officially due to high winds. That “high winds” excuse is exactly what has everyone buzzing, because wind would only matter if something is leaving the ground.

Here’s what we know and don’t know heading in.

  • 🚀 The SpaceX package is the star: Reports say the Roadster will feature about 10 small “cold-gas thrusters” borrowed from SpaceX rocket tech, designed to boost acceleration, braking, and cornering, and possibly let the car briefly hover.

  • ⚡ The specs are wild: Musk has claimed a 0-to-60 time under one second with the thruster package, which would make it one of the fastest cars ever built.

  • ⚠️ It might flop: Musk reportedly warned his own staff that the stunt “will be hard to pull off and could go wrong,” so there’s real risk this doesn’t go as planned on stage.

The Munch Take: Let’s be real about what this is and isn’t. The actual money here is tiny. The high-end Founders Series is reportedly capped at about 1,000 cars, so even selling every single one brings in roughly $250 million, a rounding error for a company worth around $1.5 trillion. So this event is about hype and brand, not the balance sheet. And right now, Tesla could use a little hype. The stock dropped heading into the event and is down about 16% year to date, so investors clearly aren’t feeling optimistic. Here’s the thing to watch: if Musk actually pulls off a hovering car on stage, that’s the kind of jaw-dropping moment that can light a fire under the stock, at least short term. If it flops, Tesla reveals have a nasty history of sending the stock lower afterward. Our stance hasn’t changed one bit. We only get interested in Tesla below $300, and it’s well above that, so we’re not buyers here no matter how cool the demo is. We’ll be watching Thursday night with popcorn, not a buy order. Enjoy the show, just don’t confuse a flying car with a good entry price.

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MARKET OVERVIEW

🍿 Tasty Movers & Shakers

🥄 $BNDSF Bending Spoons exploded 41.20% after news that Berkshire Hathaway will pour another $330 million into the software company. When Warren Buffett’s firm doubles down, traders pile in right behind it.

🧊 $GLNG Greenland Energy rocketed 76.47% after Trump said drilling in Greenland should start soon.

🖥️ $CRWV CoreWeave cratered 15.46% as rising yields on its debt stoked fears about how much it’s borrowing to build AI infrastructure. The AI buildout is thrilling until you remember somebody has to pay for all those data centers.

💻 $DELL Dell dropped 11.39% after Barclays downgraded it to Equal Weight, arguing the stock got too pricey after its big run.

🏦 $MS Morgan Stanley slipped 2.72% despite solid quarterly results, as a few business metrics improved slower than investors wanted. When expectations are sky-high, even a good quarter can leave the crowd wanting more.

STOCK OF THE DAY

🏦 Bank Of America Just Got Slapped With A $1.2 Billion Fine

Ouch. $BAC Bank of America dropped over 8% after regulators hit it with more than $1.2 billion in fines for breaking money laundering and sanctions laws. That’s the stock’s worst day since April 2025, and the third-largest penalty in U.S. Treasury history.

So what did they do? Banks are legally required to watch for and report suspicious transactions, the kind used to hide dirty money. Regulators say Bank of America failed at that for years, letting more than $5 billion in sketchy transactions slip through unreported. Worse, about $1 billion of it was tied to serious national security risks, including Chinese money laundering networks and illicit money flowing along the U.S. southern border. The bank even admitted it “willfully violated” the law.

  • 🚨 It’s a record-setter: The fine includes the largest penalty ever from one key banking regulator, so this is a statement, not a slap on the wrist.

  • 📉 The timing stung: It landed with earnings, and revenue of $30.12 billion came in below the $30.69 billion Wall Street wanted. Bad news on bad news.

  • 🌍 Sanctions got broken too: The violations touched sanctions on countries like Russia and Iran, making this a political hot potato, not just a financial one.

The Munch Take: Here’s our honest read. A one-time $1.2 billion fine hurts, but for a bank this size it’s survivable. The real worry is what it says about management. When a company this big “willfully” ignores the rules for years and admits it, that’s a culture problem, not a one-off mistake, and culture problems tend to bring more surprises. That said, we’ve been saying the big banks have slid into interesting territory, and a one-day panic drop on a known, finite fine is exactly the kind of overreaction that can create opportunity in a quality name. The fine is a headline, not a death sentence. But we’d want to hear management explain how this happened before getting excited. For now, it stays on the watchlist. A beaten-down blue chip is our kind of hunting ground, just not until we know there aren’t more skeletons in the vault.

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