By Chris, Trip & Frankie McLaughlin

Welcome to this week’s edition of the Smart Wealth Newsletter—our family’s ongoing journey of disciplined investing, generational financial learning, and building long-term wealth. What makes this newsletter unique is the perspective you gain from three investors at very different stages of life. Chris brings more than three decades of real estate expertise and market experience; Trip contributes analytical depth and modern financial thinking through his studies at the prestigious A.B. Freeman School of Business at Tulane University; and Frankie brings the fresh perspective of a rising investor and a senior at All Saints Academy, already building a strong and disciplined portfolio.

Through this multigenerational lens, we share strategies, analysis, and real investing results to help families everywhere build wealth the smart way.

This week in the financial markets showcased a mix of growing optimism and steady discipline as investors sifted through a new round of economic data, corporate earnings updates, and evolving expectations around Federal Reserve policy. All three major U.S. indices closed higher for the week. The Dow Jones Industrial Average finished at 47,954.99, the S&P 500 closed at 6,870.40, and the Nasdaq Composite ended at 23,578.13, reflecting increasing confidence in the economy’s ability to move into 2026 on firmer footing.

One of the week’s standout themes was the performance of the market’s biggest movers, which came from a combination of mega-cap technology names and resilient consumer stocks. Meta Platforms (META) closed at $673.42, continuing its upward momentum driven by strong advertising performance, cost discipline, and the rapid rollout of AI-enhanced ad tools. NVIDIA (NVDA) ended the week at $182.41, remaining the central beneficiary of explosive demand for AI datacenter infrastructure. Microsoft (MSFT) also contributed to the Nasdaq’s strength, closing at $483.16, as enterprise adoption of AI tools like Copilot begins to scale.

Apple (AAPL) finished the week at $278.78, providing stability across the indices as investors favored its strong services revenue, ecosystem stickiness, and significant share buyback activity. Meanwhile, the consumer discretionary sector saw some of the week’s sharpest moves. Ulta (ULTA) rallied significantly after reporting strong earnings and upbeat holiday spending forecasts. Dollar General (DG) surged nearly 12%, continuing its recovery as shoppers increasingly look for value. Five Below (FIVE) also posted strong gains driven by resilient spending among younger shoppers and an expanding store footprint.

Economic data played a major role in the market’s tone. Inflation continued trending downward, with core metrics inching closer to the Fed’s long-term 2% goal. This moderation, combined with steady employment data and slightly slower wage growth, strengthened investors’ belief that the Federal Reserve may be able to guide the economy toward a “soft landing”—a scenario where inflation cools without triggering a recession. Lower Treasury yields offered further support to growth stocks by reducing discount-rate pressure on long-term earnings expectations.

Energy markets introduced midweek volatility after geopolitical headlines, but crude prices eventually drifted lower, contributing to the broader narrative that inflation pressures continue to soften. Corporate earnings reports reinforced the sense of stability: mega-cap tech highlighted expanding AI demand; cloud providers reported strong enterprise spending; and retail names demonstrated ongoing consumer resilience despite higher prices.

The breadth of the week’s market gains is especially notable. For much of the past two years, market performance was heavily concentrated in a narrow group of mega-cap technology names. But today, the leadership is more balanced—technology remains strong, but industrials, retail, financials, and healthcare are all participating more meaningfully. This broad participation is typically a sign of a healthier market foundation.

As the week closed, the overall tone remained cautiously optimistic. With improving inflation data, favorable employment trends, strong AI-driven tech earnings, consistent consumer demand, and a stabilizing rate environment, the market appears well positioned heading into the final weeks of 2025. While risks remain—from geopolitics to potential earnings slowdowns—the path toward a more constructive 2026 market outlook seems increasingly clear

Broadcom (AVGO) continues to demonstrate why it stands among the most dominant, strategically positioned technology companies of the modern era. Operating at the intersection of nearly every major technological innovation—artificial intelligence, networking, cloud infrastructure, cybersecurity, wireless connectivity, and enterprise software—Broadcom has built a diversified machine that consistently compounds value over the long term. Trip has experienced this firsthand; his position in AVGO is now up 175%, reflecting both his disciplined investing approach and Broadcom’s outstanding execution.

One of Broadcom’s defining strengths is its hybrid business model. Many semiconductor companies depend almost entirely on cyclical chip sales, but Broadcom pairs its hardware expertise with a robust enterprise software portfolio, thanks to strategic acquisitions like CA Technologies and VMware. This dual-engine model generates strong, recurring revenue with impressive margins, offering both stability and scalability in a volatile tech landscape.

AI has emerged as one of Broadcom’s most powerful catalysts. The company is a leading supplier of custom AI accelerators and high-performance networking solutions used by hyperscale cloud providers such as Google, Meta, and Amazon. As generative AI and machine learning workloads grow exponentially, demand for Broadcom’s advanced networking chips continues to surge. These chips are essential for moving massive amounts of data quickly and efficiently—a backbone requirement for modern AI systems.

Broadcom’s disciplined acquisition strategy compounds its strengths. Each acquisition is integrated with a laser focus on operational efficiency, margin expansion, and long-term value creation. The VMware acquisition, in particular, positions Broadcom deeply within enterprise cloud management, infrastructure automation, and virtualization—areas that continue to experience strong secular growth.

Financially, Broadcom is a juggernaut. It consistently produces exceptional free cash flow, maintains a shareholder-friendly dividend policy, and allocates capital with precision. Its investments across semiconductor design, AI acceleration, and enterprise software make it a diversified powerhouse with exposure to several of the highest-growth areas in technology.

What makes Broadcom compelling for long-term investors like Trip is its rare blend of innovation, scale, capital discipline, and recurring revenue. In a market where many tech companies rely on a single growth engine, Broadcom has multiple. It remains positioned not just to ride future technological waves, but to help define them.

Alphabet (GOOG) closed at $585.52, giving Chris an 87.75% gain. Analysts rate Alphabet a Strong Buy with an average price target of $670. Chris holds Alphabet because its leadership in AI, cloud computing, and digital advertising makes it a foundational long-term compounder. He believes Alphabet’s dominance in machine learning and search will drive years of earnings expansion.

Amazon (AMZN) ended the week at $229.53, reflecting a 10.34% gain. Analysts currently rate Amazon a Strong Buy with a target of $260. Chris holds Amazon due to the unstoppable growth of AWS and the company’s unrivaled logistics network. He sees Amazon as a long-term engine of innovation with improving profitability.

Apple (AAPL) closed at $278.78, generating an 86.09% gain. Analysts rate the stock a Hold to Moderate Buy with a target range of $225–$240. Chris holds Apple because of its unmatched ecosystem, recurring services revenue, and strong balance sheet. He views Apple as a rock-solid core position that provides stability during volatile markets.

Costco (COST) ended at $894.68, resulting in a 90.22% gain. Analysts rate Costco a Buy with a price target near $900. Chris holds Costco for its membership-driven model and consistent earnings growth across all economic cycles. He believes Costco remains one of the most reliable and well-managed retailers in the world.

Deere (DE) closed at $475.11, translating to a 35.75% gain. Analysts rate Deere a Buy with a target around $425. Chris holds Deere because agriculture and heavy equipment demand remain structurally strong. He appreciates Deere’s ongoing integration of automation and technology into farming.

GE Aerospace (GE) closed at $283.94, producing a 184.66% gain. Analysts rate GE Aerospace a Strong Buy with a price target of $320. Chris holds GE because aerospace demand is booming, driven by global fleet renewal and service backlogs. He believes GE is entering a powerful multi-year earnings expansion cycle.

GE Healthcare (GEHC) finished at $85.46, resulting in a 3.80% gain. Analysts rate GEHC a Buy with a target near $95. Chris holds GE Healthcare due to its essential medical equipment, stable cash flows, and defensive characteristics. He sees it as a dependable healthcare anchor within his diversified portfolio.

GE Vernova (GEV) ended at $631.32, delivering a massive 523.12% gain. Analysts rate GEV a Buy with an average price target of $700. Chris holds GE Vernova because renewable energy infrastructure spending is accelerating globally. He believes it is positioned to lead the next generation of energy transformation.

Kroger (KR) closed at $62.71, rising 28.02%. Analysts rate Kroger a Hold with a target near $55. Chris holds Kroger for its defensive stability, steady demand, and consistent cash flow. It provides a reliable consumer-staples counterbalance to his higher-growth technology positions.

Meta Platforms (META) closed at $673.42, producing a 16.17% gain. Analysts rate it a Strong Buy with a price target of $760. Chris holds Meta because its advertising recovery, AI investments, and cost discipline are driving expanding profitability. He believes Meta’s long-term innovation pipeline remains deeply undervalued.

Microsoft (MSFT) finished at $483.16, resulting in an extraordinary 572.76% gain. Analysts rate Microsoft a Strong Buy with a target near $500. Chris holds Microsoft because of its unmatched leadership in AI, cloud, enterprise software, and infrastructure. He views MSFT as one of the most durable wealth-building stocks ever created.

Procter & Gamble (PG) closed at $143.45, representing a 77.22% gain. Analysts rate PG a Hold with a price target around $160. Chris holds PG because it provides global brand strength, stable income, and predictable performance. It adds defensive balance and dividend reliability to his otherwise growth-heavy portfolio.

Amazon (AMZN) last closed at $229.53, reflecting a 102.03% gain in Chris’s Fidelity Trust account. Analysts rate Amazon a Strong Buy with an average price target of $260. Chris holds Amazon because its AWS cloud dominance and operational efficiency continue powering long-term margin expansion. He also views Amazon as a diversified innovation leader with deep competitive moats across e-commerce, logistics, and AI infrastructure.

American Express (AXP) closed at $113.61, representing a 122.19% gain. Analysts maintain a Buy rating with a price target near $200. Chris holds American Express because its premium customer base and international travel momentum create durable revenue growth. He believes the company’s brand strength, card loyalty, and high-income demographic exposure make AXP a reliable long-term compounder.

Tesla (TSLA) last closed at $455.00, producing a 43.07% gain inside Chris’s Roth IRA. Analysts rate TSLA a Hold, with a consensus 12-month price target in the $383–$394 range. Chris holds Tesla because he believes the company’s leadership in EVs, autonomous driving, and robotics positions it far ahead of legacy automakers. He views Tesla as a long-duration innovation platform capable of transforming multiple industries over the next decade.

Apple (AAPL) closed at $278.78, resulting in a 156.99% gain. Analysts rate Apple a Hold to Moderate Buy with an average price target of $225–$240. Chris holds Apple because of its unmatched ecosystem, recurring services revenue, and fortress-like balance sheet. He sees Apple as a long-term stability anchor providing both safety and resilience.

NVIDIA (NVDA) finished at $182.41, giving Chris an 84.75% gain. Analysts rate NVIDIA a Strong Buy with a price target around $220. Chris holds NVIDIA because it remains the undisputed global leader in AI hardware, dominating data-center GPU demand. He believes NVIDIA is still in the early innings of a multiyear AI-driven growth cycle.

Palantir Technologies (PLTR) last closed at $181.76, showing a 19.31% gain. Analysts rate PLTR a Hold, with a revised consensus price target of $175–$190, reflecting strong government demand and rapid commercial AI adoption. Chris holds Palantir because he believes its predictive analytics and intelligence systems are becoming essential across defense, cybersecurity, and enterprise operations. He views Palantir as a long-term strategic technology leader with powerful tailwinds as AI becomes mission-critical worldwide.

Tempus AI (TEM) closed at $76.66, giving Trip a 1.47% gain. Analysts currently rate Tempus a Buy with price targets in the $85–$95 range as expectations grow around AI-powered precision medicine. Trip holds Tempus because he believes clinical AI decision systems will become deeply embedded in future healthcare workflows. He sees TEM as a long-duration innovation company at the intersection of data science and medicine.

Alibaba (BABA) ended the week at $158.32, resulting in a strong 104.28% gain. Analysts maintain a Buy rating with an average price target near $200, reflecting renewed optimism in China’s consumer recovery. Trip holds Alibaba because he believes its cloud business, e-commerce dominance, and improving regulatory outlook provide significant upside. He views BABA as a high-reward international growth play with long-term potential.

CrowdStrike (CRWD) closed at $512.03, delivering a 130.97% gain. Analysts overwhelmingly rate CrowdStrike a Strong Buy with a price target around $600. Trip holds CRWD because cybersecurity spending remains one of the few areas of corporate IT budgets that continues expanding in any economy. He believes CrowdStrike’s AI-driven Falcon platform puts it at the forefront of next-generation security.

Broadcom (AVGO) ended the session at $390.24, showing a 175.51% gain. Analysts rate AVGO a Strong Buy with price targets in the $430–$475 range. Trip holds Broadcom because of its leadership in AI accelerators, networking chips, and enterprise software—areas he believes will dominate over the next decade. He sees AVGO as a premier compounder with exceptional financial discipline.

MicroStrategy (MSTR) closed at $178.99, resulting in a 3.10% gain. Analysts generally rate MSTR a Hold, with wide-ranging targets due to its Bitcoin exposure. Trip holds MSTR as a strategic lever on institutional Bitcoin adoption. He sees it as a high-volatility asset with meaningful asymmetric upside.

GE Vernova (GEV) closed at $631.32, producing a 529.79% gain. Analysts rate GEV a Buy with price targets near $700. Trip holds GEV because he believes renewable infrastructure, grid modernization, and decarbonization trends will fuel years of expansion. He sees GEV as a generational opportunity in sustainable energy.

Microsoft (MSFT) closed at $483.16, resulting in a 447.21% gain. Analysts maintain a Strong Buy rating with a price target near $500. Trip holds Microsoft because of its unmatched leadership in AI, cloud, enterprise tools, and software ecosystems. He views MSFT as a foundational compounder in any long-term portfolio.

Apple (AAPL) ended at $278.78, producing a 143.30% gain. Analysts rate Apple a Hold to Moderate Buy, with targets in the $225–$240 range. Trip holds Apple because of its massive ecosystem, sticky services revenue, and consistent capital returns. He sees Apple as a stabilizing anchor with reliable long-term performance.

NVIDIA (NVDA) finished at $182.41, generating a 66.65% gain. Analysts rate NVDA a Strong Buy with a target around $220. Trip holds NVIDIA because it remains the global leader in AI chips powering nearly every advanced model and data center. He believes NVIDIA is still early in a multi-year AI supercycle.

Meta Platforms (META) closed at $673.42, marking a 16.53% gain. Analysts rate Meta a Strong Buy with an average price target of $760. Trip holds Meta because of its improving margins, AI-driven advertising gains, and long-term innovation in mixed-reality. He believes Meta’s future earnings trajectory remains significantly undervalued.

Tenaya Therapeutics (TNYA) closed at $1.41, resulting in a 0.73% gain for Frankie. Analysts rate TNYA a Buy with price targets in the $3–$4 range. Frankie holds Tenaya because he believes breakthrough biotech carries asymmetric upside. He sees this as a long-term moonshot with the potential to scale dramatically if its gene therapy platform succeeds.

Navitas Semiconductor (NVTS) closed at $9.48, producing a 27.42% gain. Analysts rate NVTS a Buy with a price target near $12. Frankie holds Navitas because he believes gallium-nitride (GaN) chips will play a central role in next-generation charging systems, EVs, and energy-efficient electronics. He sees NVTS as a high-growth innovator at the frontier of semiconductor materials.

GE Vernova (GEV) finished at $631.32, marking a huge 529.79% gain. Analysts maintain a Buy rating with targets around $700. Frankie holds GEV because he believes renewable energy and grid modernization will be among the defining investment themes of the next two decades. He sees GEV as a core green-energy holding with long-run compounding potential.

Nebius Group (NBIS) closed at $98.04, up 15.65%. Analysts rate NBIS a Hold to Moderate Buy, with targets in the $110–$120 range. Frankie holds Nebius because he believes cloud distribution platforms and AI compute services will underpin the next generation of global software tools. He sees NBIS as a promising emerging player in this evolving ecosystem.

Microsoft (MSFT) closed at $483.16, returning a 332.08% gain. Analysts maintain a Strong Buy rating and a price target of roughly $500. Frankie holds Microsoft because of its global leadership in AI, cloud, and enterprise software. He sees MSFT as one of the most durable long-term investments available.

Tesla (TSLA) ended at $455.00, gaining 53%. Analysts rate TSLA a Hold with a price target range of $383–$394. Frankie holds Tesla because he believes its innovations in EVs, robotics, and autonomous software represent the future of transportation. He sees TSLA as a high-upside, high-innovation platform stock.

Palantir (PLTR) closed at $181.76, showing a 26.33% gain. Analysts currently rate PLTR a Hold, with updated targets between $175–$190. Frankie holds Palantir because he believes AI-powered intelligence systems will become essential across government, defense, and enterprise. He sees PLTR as a strategic long-term AI infrastructure leader.

Aurora Innovation (AUR) closed at $4.46, with a 14.36% gain. Analysts rate AUR a Buy, with targets in the $5.50–$7.00 range. Frankie holds Aurora because he believes autonomous trucking will transform logistics worldwide. He sees AUR as a speculative but high-potential position in the automation wave.

Meta Platforms (META) closed at $673.42, producing a 16.53% gain. Analysts maintain a Strong Buy rating with a price target near $760. Frankie holds Meta due to its improving profitability, AI-driven recommendation systems, and strong long-term growth prospects in augmented and virtual reality. He views Meta as a powerful leader in the future of social technology.

A 1031 Exchange remains one of the most powerful wealth-building tools available to real estate investors. It allows an investor to sell an investment property and reinvest the proceeds into another “like-kind” property while deferring all capital gains taxes. This means the investor keeps 100% of their equity working for them, rather than losing a large portion to taxes. Over multiple exchanges, this can create extraordinary compounding, enabling investors to scale from a small property to a large portfolio—tax deferred the entire way.

To qualify for a 1031 Exchange, the property sold must be held for investment or business purposes; primary residences do not qualify. Once the property is sold, the investor has 45 days to identify replacement properties and 180 days to close on one of them. These timelines are strict, and missing either deadline disqualifies the entire exchange. Many investors work with a qualified intermediary—required by law—who holds the sale proceeds to ensure IRS compliance.

Another important rule is that the replacement property must be of equal or greater value than the property sold to defer all taxes. If the investor receives any leftover cash (“boot”) at closing, that portion becomes taxable. Additionally, debt must be replaced: if the original property carried a mortgage, the new property must carry an equal or greater amount of debt, or the investor must contribute additional cash to offset it.

One of the most powerful strategies investors use is the “swap ‘til you drop” approach. By continually exchanging into larger or more lucrative properties, investors defer taxes throughout their lifetime. When the investor passes away, their heirs receive a stepped-up basis—eliminating the deferred capital gains entirely. This makes the 1031 Exchange not merely a tax strategy, but a generational wealth strategy.

When used correctly, 1031 Exchanges allow investors to grow portfolios faster, reposition into better markets, diversify asset classes, and strategically upgrade properties without the tax drag that slows growth. For investors focused on long-term wealth creation, few tools are as impactful as the 1031 Exchange.

This newsletter is for educational and entertainment purposes only. It does not constitute financial, legal, or investment advice. Always consult with a licensed professional before making investment decisions. All investing involves risk, including the possible loss of principal. Past performance is not indicative of future results.