Good Morning. A $1 billion U.S. radar just got taken out by a cheap drone. We break down what Iran is targeting and why it matters.

We also cover Nepal's upset election, Gen Z's mall revival, and Ray Dalio's debt cycle warning (forwarded this email? Join 523K readers).

TOP STORY TODAY

Blinding US Defenses

Iran has struck radar and air defense systems across six Middle Eastern countries in recent days, targeting U.S. and allied infrastructure in Qatar, the UAE, Jordan, Bahrain, Kuwait, and Saudi Arabia. Attacks have primarily used low-cost one-way drones rather than ballistic missiles (Shahed-136 video).

The most significant strike damaged a roughly $1 billion early-warning radar at Qatar's Al-Udeid Air Base. A Thaad radar in Jordan was also hit. The U.S. operates only seven total Thaad batteries worldwide, with two currently deployed in the region.

U.S. officials report missile attacks have dropped 90% and drone attacks 83% since the conflict began, while American forces continue reinforcing regional defenses with additional equipment and interceptors. Oil prices spike.

Nepal's Election Upset

Nepal's newly formed Rastriya Swatantra Party (RSP) is headed for a landslide parliamentary victory, capturing 103 of 165 directly elected seats with leads in 21 more. The four-year-old party also holds roughly 51% of proportional representation votes, likely enough to form a government.

RSP's prime ministerial candidate is Balendra Shah, a former rapper (video) who won Kathmandu's mayoral race in 2022 and rose to prominence during 2025 youth-led protests that ousted longtime Prime Minister Khadga Prasad Oli.

The win ends decades of dominance by Nepal's two legacy parties. RSP has asked supporters to avoid public celebrations out of respect for protesters killed during last year's uprising.

Gen Z’s Mallrats

Gen Z shoppers are driving a measurable mall recovery, with Americans aged 18-24 making 62% of general merchandise purchases in physical stores last year, outpacing older generations. Their global retail spending is projected to exceed $12 trillion annually by 2030.

Mall owners are responding by redesigning common areas for social media appeal, courting online-native brands, and partnering with influencers. Online retailer Edikted opened 11 physical locations after launching digitally in 2021, with 14 more planned this year.

Major retailers are crediting the shift directly. Pacsun grew its store count last year for the first time in 18 years, while Tapestry reported double-digit in-store sales growth driven largely by Gen Z shoppers (Pacsun’s Youth Report).

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TODAY’S LIFE ADVICE

How to Set Up a Trust

A trust controls what happens to your assets during your lifetime and after death.

▶ Here's how to set one up:

  • Decide which assets to include

  • Name your beneficiaries

  • Define distribution rules and conditions

  • Select a neutral trustee (a bank works well)

  • Draft the document with an estate planning attorney

If you're a beneficiary, expect asset distribution to take six months to two years. Understanding trusts before you need one puts you in a stronger financial position.

Ray Dalio: "AI Is Eating Everything”

Ray Dalio warns we're in Stage 5 of the debt cycle, where systems fail and social order breaks down. With a $2 trillion deficit (40% of spending), 60% of Americans reading below sixth grade, and irreconcilable political divisions, the path forward requires three things: 1. educate children well, 2. create civil environments for productivity, and 3. avoid wars. The 3% solution (deficit to GDP ratio through balanced cuts to taxes, spending, and interest rates) offers a narrow escape route, but time is running out.

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