Morning Reads

Retail resurrection? Bed Bath & Beyond (BBBY) soars 25% after recording its first quarter of significant revenue growth in nearly five years.

Transatlantic tensions: Germany's Merz says the U.S. is being 'humiliated’ by the IRGC and he can't see 'what strategic exit the Americans are choosing' to end the Iran war.

Private credit: Despite a steep discount, less than 1% of investors in Blue Owl's frozen fund reportedly took an offer from hedge fund manager Boaz Weinstein.

Picking up steam

Friction over taxing the rich is enveloping the coasts as a way to fund social priorities and balance budgets. New York City Mayor Zohran Mamdani is currently in a boxing match with Citadel's Ken Griffin after filming a video that spotlighted the hedge fund manager's Manhattan penthouse. The latter has since threatened a midtown project expansion that would create 15,000 jobs, while Mamdani doubled down on the "fundamentally broken" system and said it would "apply broadly without exception."

Next stop, California! A measure proposed by Service Employees International Union-United Healthcare Workers West (SEIU-UHW) has obtained 1.5M signatures, gaining nearly double the amount needed to put a controversial measure on the statewide ballot in November. Called the "2026 Billionaire Tax Act," the initiative would impose a one-time 5% tax on any billionaire residing in California, which would span their entire net worth, including businesses and stocks to art and collectibles. It's intended to help fund public education and state food assistance programs, as well as prevent hospital and clinic closures.

Proponents of the blanket tax argue that it would counter federal cuts enacted by the Trump administration that favor the wealthy, like California's Medi-Cal, changes to SNAP and CalFresh, and the school funding benefits that are often linked to these programs. Those who are against the measure, including California Governor Gavin Newsom, say it will drive away the wealthiest residents of California, like the leaders of Silicon Valley and Hollywood, who have supplied state coffers and driven the economy for years. There are also fears that such a precedent could eventually extend to other income levels, leading to an exodus of entrepreneurial minds to states where regulatory and tax policies are favorable to innovation.

"I fled socialism with my family in 1979 and know the devastating, oppressive society it created in the Soviet Union. I don't want California to end up in the same place," commented Google (GOOGL) co-founder Sergey Brin, who relocated from California to Nevada late last year. Others like DoorDash (DASH) CEO Tony Xu and Palantir (PLTR) co-founder Peter Thiel have likewise been vocal about their opposition, donating millions of dollars to defeat the measure. Ray Dalio says a wealth tax may spark a bubble pop

The numbers: California has more billionaires than any other state, with estimates ranging between 200 and 300. The state also features the largest top marginal income tax rate in the United States, with the highest-income residents serving as the biggest payers to state coffers—by a long shot. According to the California Department of Finance, nearly 40% of the state's personal income tax revenue, the financial backbone of its nearly $350B budget, comes from the top 1% of income earners. (5 comments)

Here's the latest Seeking Alpha analysis

Micron's Hidden CPU-Driven Inflection Point Is Here

Alphabet Is Getting Ready For War

How To Invest $100,000 Today: 5 Strategies For Success

ServiceNow: Post-Earnings Meltdown Is Well Overdone

Selling The Furniture To Pay The Rent: The Unsustainable Reality Of Strategy, Inc. Preferred

What else is happening...

WSB survey results: Chinese-brand vehicles should be United (UAL) CEO explains why he pitched American (AAL) merger.

China blocks Meta's (META) Manus deal over security concerns.

Bill Ackman's Pershing Square now expected to raise ~$5B in IPO.

California fuel imports surge following refinery closures - Argus.

Elon Musk vs. Sam Altman: The AI clash is heading to court.

Today's Markets

In Asia, Japan -1%. Hong Kong -1%. China -0.2%. India -0.5%.
In Europe, at midday, London +0.5%. Paris +0.3%. Frankfurt +0.1%.
Futures at 6:30, Dow +0.3%. S&P -0.2%. Nasdaq -0.6%. Crude +3.8% to $99.98. Gold -1.4% to $4,626.30. Bitcoin -1.6% to $76,562.
Ten-year Treasury Yield -1 bp to 4.36%.

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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