Smart Wealth Newsletter, Issue #14, November 9, 2025

Hello Smart Wealth community! Chris here alongside Trip and Frankie to bring you this week’s edition of the Smart Wealth Newsletter. We love sharing our family’s journey of investing and learning together in stocks and real estate while helping you do the same. Trip is a junior at Tulane University’s Freeman School of Business, and Frankie is a senior at All Saints Academy preparing for college. Each week we track our own portfolios, analyze the markets, spotlight a stock, and explore a real-estate strategy you can use to grow long-term wealth. Let’s get started!

Last week, U.S. equity markets entered a phase of introspection rather than exuberance, with major benchmarks reflecting a cautious tone. The S&P 500 closed at 6,728.80, the Dow Jones Industrial Average at 46,987.10, and the Nasdaq Composite slipped to 23,004.54. Although daily moves on Friday were modest, the broader story for the week was clear: investors are increasingly shifting from speculation to selectivity as the market’s leadership narrows and valuation fatigue sets in.

Investor sentiment was challenged by macro uncertainty and a delayed stream of economic data due to the ongoing government shutdown. The lack of reliable indicators has forced traders to rely heavily on corporate guidance and earnings trends, which have been mixed. Meanwhile, softening consumer-confidence readings and new waves of corporate layoffs stoked concerns about the durability of the labor market and the strength of holiday spending.

Technology and high-growth names, which had powered much of the 2025 rally, paused sharply. AI-linked chip and cloud stocks experienced notable declines as investors reassessed lofty valuations. NVIDIA (NVDA) dropped about 3.5% for the week, AMD fell 4.1%, and Tesla (TSLA) declined nearly 4% after shareholders approved Elon Musk’s record-setting compensation package, renewing governance debates. Meta Platforms (META) eased 2% after guiding slightly higher on expenses.

Defensive and cash-flow-rich companies fared better. Costco (COST) gained about 1%, Procter & Gamble (PG) rose 0.8%, and Johnson & Johnson (JNJ) advanced 0.6%. Investors also rewarded strong earnings from Expedia (EXPE), which soared 17%, and Akamai Technologies (AKAM), up 15%, as both delivered robust profit beats and upbeat forward guidance.

Sector rotation underscored this new environment. Consumer staples, healthcare, and utilities outperformed, while communication services and pure-tech growth lagged. Profitability, visibility, and balance-sheet strength are once again commanding a premium. The S&P technology sector finished down about 3.4% on the week, while consumer staples and utilities each gained more than 1%.

Interest-rate dynamics remain central to sentiment. The 10-year Treasury yield hovered near 4.28%, its relative stability bringing temporary relief to equities but still posing a drag on valuation multiples. Higher rates raise discount costs for long-duration growth stories and continue to favor dividend payers and income-focused equities.

Small-caps lagged meaningfully, with the Russell 2000 index falling about 1%. The U.S. dollar strengthened slightly, gold held above $2,400 per ounce, and crude oil steadied near $72 per barrel after several volatile weeks. These cross-asset shifts suggest investors are trimming risk rather than abandoning equities altogether.

Earnings season painted a picture of resilience mixed with realism. Roughly 82% of S&P 500 companies have reported, with 72% surpassing profit estimates but offering more conservative forward guidance. Executives widely cited rising labor costs and lingering supply-chain inefficiencies as margin headwinds. Companies that executed well on cost control were rewarded; those that disappointed on expense discipline faced swift punishment.

Among the standouts, Apple (AAPL) closed at $268.47 after unveiling its Vision Pro enterprise integrations; Microsoft (MSFT) held steady near $496.82 as Azure’s AI workloads continued expanding; and Alphabet (GOOG) finished at $279.70, only slightly lower, supported by stable advertising results. Industrial stalwarts GE Aerospace (GE) and GE Vernova (GEV) advanced 2% and 3%, respectively, reflecting strong demand in aviation and renewable infrastructure.

Market breadth, however, remains thin—fewer than 40% of S&P components trade above their 50-day moving averages—signaling concentrated leadership among mega-caps. This creates both opportunity and risk: high-quality names continue to lead, but any stumble in the top tier could ripple across the index.

Looking ahead, the focus now shifts to the Consumer Price Index and retail-sales data expected this week. These reports will help shape expectations for the Federal Reserve’s early-2026 policy path. In summary, U.S. equities remain resilient yet increasingly selective. The “AI-boom” enthusiasm has cooled, replaced by a more rational market that rewards genuine earnings, prudent capital allocation, and valuation integrity. For disciplined investors, this is an environment where patience, balance, and quality leadership win.

Costco Wholesale, closing Friday at $922.74, continues to define the standard for durable retail excellence. Its membership-warehouse model has transformed shoppers into loyal partners, with renewal rates above 90% ensuring a recurring-revenue stream that stabilizes performance through both booms and recessions. The company’s profits are built not on markups but on membership fees, which supply predictable cash flow while allowing Costco to maintain razor-thin prices that attract heavy traffic and drive massive volumes.

The Kirkland Signature brand, now exceeding 30% of sales, has evolved into a margin-enhancing powerhouse that deepens customer trust. Expansion remains robust, with roughly 25 new warehouses slated for 2026 and continuing penetration across Europe and Asia. Strategic investments in logistics automation and cold-chain fulfillment are bolstering efficiency and helping Costco seamlessly manage its global scale.

Financially, Costco’s fundamentals are pristine: minimal net debt, high inventory turnover, and a double-digit return on invested capital. Analysts project fiscal 2026 EPS growth between 8% and 10%, powered by cost discipline and global membership growth. At roughly 46× forward earnings, the stock commands a premium valuation—but investors consistently pay that premium for quality and resilience.

Chris, Trip, and Frankie all rate Costco a long-term Buy, calling it a “sleep-well-at-night” compounder—defensive during downturns, steady in recoveries, and perfectly aligned with a philosophy of patient, sustainable wealth building.

(as of market close – November 7 2025)

Alphabet (GOOG $279.70) +63.04% — Strong Buy | Target $310–$345 | Chris: Buy
Alphabet remains dominant in digital advertising and cloud infrastructure, supported by durable free cash flow and repurchases.

Amazon (AMZN $244.41) +17.50% — Buy | Target $270–$295 | Chris: Buy
AWS growth and digital ads sustain double-digit top-line momentum.

Apple (AAPL $268.47) +79.35% — Hold | Target $260–$290 | Chris: Hold
Valuation is full, but services revenue keeps the ecosystem strong.

Costco (COST $922.74) +96.44% — Buy | Target $950–$1,050 | Chris: Buy
A cornerstone holding built on disciplined pricing and loyal memberships.

GE Aerospace (GE $307.27) +208.05% — Strong Buy | Target $320–$350 | Chris: Buy
Defense exposure and aircraft-engine demand fuel multi-year growth.

GE Vernova (GEV $575.13) +470.12% — Strong Buy | Target $600–$650 | Chris: Buy
Renewables and grid upgrades drive substantial expansion.

Microsoft (MSFT $496.82) +591.78% — Strong Buy | Target $525–$560 | Chris: Buy
Azure + Copilot momentum reinforces its AI leadership.

Procter & Gamble (PG $146.98) +82.66% — Hold | Target $145–$155 | Chris: Hold
A reliable dividend anchor amid volatility.

(as of market close – November 7 2025)

Amazon (AMZN $244.41) +115.13% — Buy | Target $270–$295 | Chris: Buy
Core e-commerce and cloud powerhouse.

American Express (AXP $113.61) +201.83% — Buy | Target $125–$145 | Chris: Buy
Premium-spend growth drives earnings expansion.

Exxon Mobil (XOM $117.22) +39.70% — Buy | Target $120–$135 | Chris: Buy
Stable energy cash flow and strong dividend.

Apple (AAPL $268.21) +147.24% — Hold | Target $260–$290 | Chris: Hold
Services resilience keeps Apple core.

NVIDIA (NVDA $188.15) +90.57% — Strong Buy | Target $210–$245 | Chris: Buy
AI GPU leadership remains unmatched.

Broadcom (AVGO $1,103.66) +124.32% — Strong Buy | Target $1,150–$1,250 | Chris: Buy
Diversified semiconductor and software engine.

Tesla (TSLA $261.58) +186.39% — Hold | Target $250–$310 | Chris: Hold
Long-term innovation balanced by valuation risk.

Palantir (PLTR $177.93) +16.80% — Hold | Target $160–$200 | Chris: Buy
AI contracts and government expansion justify a Buy.

(as of market close – November 7 2025)

CrowdStrike (CRWD $539.81) +143.50% — Strong Buy | Target $560–$620 | Trip: Buy
Cybersecurity leader with sticky recurring revenue.

GE Vernova (GEV $575.13) +473.73% — Strong Buy | Target $600–$650 | Trip: Buy
Top performer; renewables and grid demand accelerating.

Microsoft (MSFT $496.82) +462.68% — Strong Buy | Target $525–$560 | Trip: Buy
Azure and Copilot dominate enterprise AI.

Apple (AAPL $268.21) +134.38% — Hold | Target $260–$290 | Trip: Hold
Ecosystem strength; holding for next entry point.

Broadcom (AVGO $349.43) +146.69% — Strong Buy | Target $1,150–$1,250 | Trip: Buy
Semiconductor and software growth dual engine.

NVIDIA (NVDA $188.15) +71.90% — Strong Buy | Target $210–$245 | Trip: Buy
AI hardware leader powering global data centers.

Meta Platforms (META $621.71) +7.59% — Buy | Target $680–$720 | Trip: Hold
Ad growth steady; cost discipline key.

Adobe (ADBE $326.95) –9.91% — Buy | Target $575–$650 | Trip: Hold
Temporary pullback; long-term creative software leader.

Oracle (ORCL $239.26) –26.10% — Hold | Target $240–$265 | Trip: Hold
Mixed cloud performance; watching for rebound.

(as of market close – November 7 2025)

GE Vernova (GEV $575.13) +473.73% — Strong Buy | Target $600–$650 | Frankie: Buy
Frankie’s top performer; renewable grid leader.

Microsoft (MSFT $496.82) +344.30% — Strong Buy | Target $525–$560 | Frankie: Buy
Largest position; AI and cloud strength.

Tesla (TSLA $429.52) +44.43% — Hold | Target $410–$475 | Frankie: Hold
Margins pressured; holding long-term.

Palantir (PLTR $177.93) +23.67% — Hold | Target $160–$200 | Frankie: Buy
AI analytics expansion and new defense contracts.

Meta Platforms (META $621.71) +14.07% — Buy | Target $680–$720 | Frankie: Buy
AI ad tools strengthen profitability and moat.

Depreciation is the silent wealth-builder in real estate—a non-cash deduction that allows investors to recover the cost of property over time even as it appreciates. Residential assets depreciate over 27.5 years (39 for commercial), generating valuable offsets against taxable income and boosting after-tax cash flow. Savvy investors go further by conducting cost-segregation studies to accelerate deductions on short-lived components such as lighting, cabinetry, and HVAC systems, front-loading tax benefits and freeing capital to reinvest.

A $1 million rental with $800 k in depreciable improvements might yield about $29 k per year in straight-line depreciation, but cost segregation can raise that to $45 k+, dramatically reducing tax liability. Depreciation shines during periods of high interest rates or inflation by offsetting operating costs and preserving cash flow. However, investors should plan ahead for recapture tax upon sale—or defer it via a 1031 exchange.

In our own portfolio, we model depreciation into every acquisition, treating it not as accounting trivia but as an essential lever of compounding. It’s a strategy that multiplies wealth not by speculation but through disciplined, tax-efficient ownership. Key takeaway: depreciation doesn’t just save taxes—it fuels compounding by keeping more capital in play year after year.

This newsletter is for educational and informational purposes only and does not constitute financial, investment, or tax advice. Past performance is not indicative of future results. Always consult a licensed professional before making investment decisions.