On July 4th 2025 President Trump’s One Big Beautiful Bill Act was signed into law. This bill did many things such as, cut taxes, cut medicaid, broadened immigration enforcement, and more. While there is a lot to talk about in regards to this bill I will be focusing on what it means for university endowments. University endowments are long term donated funds that's main purpose is to provide stable and persistent support for the university's students, mission, research, and facilities. The OBBB act hiked taxes on these endowment funds which caused many universities to shift out of liquid short term investments in order to transition to long term private equity investments that are illiquid and thus taxed less. These so-called “dark corner” investments can and may prove to be dangerous for these universities as they are susceptible to bad management and high leverage. Unlike the traditional endowment investments which are usually composed of government backed and mortgage backed securities that are stable and liquid. Along with this, higher rates can bankrupt highly leveraged private equity firms and these universities could find themselves in big financial trouble. 

Trump's fight to strangle big universities into doing what he wants could be the downfall of universities as we know it.

Equity Insights 

↑Robinhood(HOOD): Now set to be on the S&P 500’s September inductee list with two other stocks on the 22nd. Shares traded 13% higher as of Monday 9/8/25 only 15 minutes after the morning's opening.

↑Circle(CRCL): Up almost 20% on Thursday 9/11/25 alone. Strong growth of stablecoin in the US is mostly moving this stock in the bullish direction. Offering stability like the dollar and speed like bitcoin is a major positive factor of why stablecoins are growing so quickly.

Theme of the Week

Insider trading: buying or selling securities using confidential, non public information about a company or sector of the economy. C-suite company members are those most often accused of this wrongdoing, but there is a much bigger insider trading ring at play: Congress. Or as I like to call it, the insider exchange forum. Politicians often have vested interests in what they invest in, blurring the lines between retail and insider trading. Politicians often serve on the congressional committees of their investments. For example, Nancy Pelosi (former speaker of the house of representatives) held Nvidia stock while the chips act (a US bill denoting over 52 billion in funding to revitalize the American semiconductor industry) was in negotiation. She knew the likely outcome of this act (its passage into law), and profited off of that immensely. Along with this there have been known instances of members of the national security committee profiting off of defense stocks. Whether they know what deal will be passed or with what company, it's shady stuff. Politicians should want to serve their local communities and constituents, not profit off of trading because of their position in political affairs! 

The “Restore Trust in Congress Act”, a September 2025 bill introduced to congress aiming to ban congress and their spouses from trading stocks. There was a bipartisan group that introduced this bill, considering next to nothing is bipartisan in this day and age this is a major sign of importance for this bill to be passed. Those who oppose the bill say it discourages qualified businessmen from running, but as I stated earlier: if you want to run for congress you should be doing so to help your community, not to profit monetarily from trading with advanced, non-public information. One of the many proposals of the “Restore Trust in Congress Act” is to make all members of congress and their families place certain investments in a blind trust (an investment tool that separates them from their investment decisions and places them in the hands of a qualified financial advisor). 

About This Newsletter 

This newsletter shares insights into our complex current day economic/geopolitical situations and provides clear, actionable equities insights as well. Whether just getting into the game or a seasoned veteran, this newsletter is your edge.