Banks & Congress Reps Cashing In On Market Turbulence

Plus, Wall Street is quite taken with tariff turmoil

Author

Brandon Harris
April 18, 2025

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Hundreds of investing and finance newsletters hit my (and maybe your) inbox every week. This is the best of the best.

This week:

  • 🌱 SEC Approves GIX For Launch

  • 💻 OpenAI is Taking On X

  • 📊 Congress Rep’s Trading Raises Red Flags

  • 🎮 GameStop’s CEO Bets on Business

  • 💰 Wall Street’s Well-Off With Tariffs

  • 🌋 White House Reels in Rare Earth

  • 🤔 3 stocks to consider

With how quickly the market and investment climate is changing right now, we can’t afford to not stay up to date… You can always read the latest and most relevant finance news & updates at FinanceWrapped.com.

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🌱 First Green Securities Exchange Gets SEC Approval

The SEC has approved GIX, marking a historic first as America's inaugural green securities exchange. This platform will exclusively list companies meeting strict environmental standards.

💻 OpenAI's Social Media Ambitions Exposed

OpenAI has been secretly developing an X-like social network, with an internal prototype focused on ChatGPT's image generation capabilities.

Full development would give OpenAI access to valuable real-time data for training its AI models. CEO Sam Altman is now seeking external feedback on the concept.

📊 MTG Faces Insider Scrutiny

Representative Marjorie Taylor Greene faces calls for an insider trading investigation following suspicious stock purchases during recent market volatility.

The controversy centers around her acquisition of 26 stocks just days before President Trump's surprise 90-day tariff pause announcement sent markets soaring. The timing and nature of these trades have raised serious concerns about potential insider knowledge.

🎮 Ryan Cohen Doubles Down on GameStop

GameStop CEO Ryan Cohen has significantly increased his stake in the video game retailer, pledging over half his $1 billion position as collateral for a margin loan.

The billionaire's recent purchase of 500,000 additional shares brings his total ownership to 37.3 million shares, representing 8.4% of the company.

💰 Wall Street's Big Trading Bonanza

The five largest US banks have capitalized on market volatility, earning a staggering $37 billion in trading revenue during Q1 2025. This record-breaking performance, driven by President Trump's shifting tariff policies, marks their strongest quarter in over a decade.

🌋 White House Tackles Rare Earth Supply Crisis

President Trump has signed an executive order to investigate national security risks related to foreign dependency on critical minerals and rare earth elements. China's recent export restrictions have sparked concerns about supply chain vulnerability.

The initiative aims to accelerate domestic production and secure America's supply chain for materials used in everything from semiconductors to military equipment.

Stock ideas

Here are three of my favorites from this past week.

Analysis provided by ​public.com​.

Remember to always DYOR.

Capri Holdings (CPRI)

Bullish Case

  • Net Cash Position: The Versace sale puts CPRI in a strong net cash position of ~$250 million after debt repayment.

  • Tariff Relief Potential: Bond market pressures and economic impacts make it likely that President Trump will need to reduce clothing and textile tariffs soon.

  • Strategic Focus: The company can now concentrate on its profitable Michael Kors and Jimmy Choo brands.

Bearish Case

  • High Tariff Exposure: Current 145% tariffs on Chinese imports severely impact CPRI's operations, with significant production in China and ~15% of sales in Asia.

  • Geographic Revenue Risk: The remaining brands (KORS + CHOO) have meaningful exposure to Asian markets, where sales have been tapering since 2021.

PotlatchDeltic Corporation (PCH)

Bullish Case

  • Tariff Beneficiary: PCH stands to gain significantly from President Trump's new 50%+ tariffs on Canadian lumber.

  • Strategic Timber Assets: PCH controls 2.06 million acres across the U.S. South and Pacific Northwest, providing valuable hard assets during inflationary periods.

  • Alternative Revenue Streams: The company is actively developing solar and carbon capture storage opportunities on its land holdings.

Bearish Case

  • Product Quality Concerns: Southern Yellow Pine may not match the quality of Canadian imports, potentially limiting market share gains despite price advantages.

  • Economic Sensitivity: The current uncertain policy environment is reducing new hiring and investments, potentially impacting housing starts and timber demand.

Rayonier (RYN)

Bullish Case

  • Significant NAV Discount: Trading at a 27.8% discount to net asset value, offering 38.5% upside potential based on conservative land valuations.

  • Strategic Asset Sales: Successfully executed $1.45 billion in cumulative disposition proceeds including the recent $710 million New Zealand joint venture sale.

  • Land Value Enhancement: Management is actively pursuing higher-value land uses like solar, carbon capture, and real estate development.

Bearish Case

  • Market Sentiment: Despite strong fundamentals, bearish investor sentiment has pushed the stock price significantly lower.

  • Timeline Uncertainty: Higher-value land use conversions require lengthy approval processes and substantial capital investment before returns.

💙 That’s a wrap

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Disclosures

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  • Nothing above is financial advice