Welcome back to another issue of the Smart Wealth Newsletter — a family-built investing journal from Chris, Trip, and Frankie. We close out the final full trading week before Christmas with fresh portfolio progress, strong equity performance, and long-term wealth strategies that continue to compound with discipline and patience.

Chris brings decades of real-estate experience and multi-cycle market perspective. Trip is finishing his semester at the Freeman Business School at Tulane University, sharpening his finance and analytics foundation. Frankie is moving through his senior year at All Saints Academy, already building an investor mindset before stepping into college. Together we shape a weekly look at stocks, real estate, education, family investing, and compound wealth.

The final full trading week before Christmas delivered a constructive finish for U.S. markets, despite choppy action earlier in the week. By Friday’s close on December 19, 2025, sentiment had turned decisively positive, helping the major indexes post solid daily gains and positioning equities for what could be a respectable year-end push.

The S&P 500 closed at 6,834.50, up roughly +0.9% on Friday, emphasizing broad participation across large-cap sectors. The Nasdaq Composite outperformed, rising about +1.3% to 23,307.62, fueled by renewed buying in large-cap tech and high-growth software names. The Dow Jones Industrial Average climbed +0.4% to 48,134.89, lagging the tech-heavy indexes but still adding green to the tape.

That upside move mattered because earlier in the week, markets had absorbed a mix of inflation headlines, international revenue warnings from multinationals, and lingering concerns about whether valuations across profitable AI stocks had run ahead of earnings reality. Friday did not erase all doubt — but it showed institutional money is still willing to support risk assets when macro conditions aren’t deteriorating.

Investors have been debating whether the 2025 version of the “Santa Claus Rally” would come together. Historically, the last five trading days of December plus the first two of January produce outsized gains as managers position books, chase performance, and taxable investors finish their selling. This week’s late-week rally fits that playbook.

Bulls argue that while pullbacks may still surface, the market has absorbed rate volatility, political uncertainty, and global trade noise without breaking down. The Nasdaq’s leadership is particularly persuasive, given how aggressively that index was punished during September and October when high-multiple stocks faced sharp valuation compression.

The Nasdaq’s 1.3% surge was powered by familiar momentum engines. Nvidia (NVDA) — the defining stock of AI infrastructure — rebounded after a slow start to the month, thanks to ongoing data-center demand and sovereign-scale GPU purchasing. Oracle (ORCL) rallied as cloud AI adoption broadens. Advanced Micro Devices (AMD), Synopsys (SNPS), Cadence Design (CDNS), and Arm Holdings (ARM) continued to show sympathy upside as the semiconductor ecosystem moves in lockstep.

Meanwhile, Trump Media & Technology (DJT) recorded volatile swings, underscoring that risk appetite has not disappeared. When speculative names move, liquidity confidence is returning.

It was not a universal melt-up. Nike (NKE) declined after highlighting weak China-based sales performance and softer global discretionary behavior. That pressure flowed into pockets of consumer names including Lululemon (LULU) and even Starbucks (SBUX). Conversely, Costco (COST) continues to maintain pricing power among higher-income shoppers, benefiting from premium consumption rather than discount weakness.

This is the essence of sector divergence: even as indexes rise, sub-segments of the market display stress. Energy stocks sold off on crude softness. Financials stayed mixed because yield-curve shifts complicate bank-earnings visibility. Industrial names like Caterpillar (CAT) and Deere (DE) paused as investors await 2026 capital-expenditure guidance.

A major subplot this week was inflation moderation. Consumer-price data showed softening pressure in goods and transportation, while services remain sticky. Still, the deceleration from 2024 peak levels continues. Markets respond to direction, not perfection — and so long as inflation does not reaccelerate, the Federal Reserve can maintain a stability stance.

The 2026 rate debate is quieting. Powell is not promising cuts, but also is not threatening hikes. Flat-policy alone supports risk assets.

Nike’s warning was important because China’s consumer slowdown hits global brands directly. It weighs on:

A China stabilization would lift multinationals meaningfully. A deterioration would pressure earnings.

Sentiment is just sentiment — earnings are the arbiter. The market needs corporate guidance to justify elevated valuations in AI-exposed names. If earnings confirm adoption, names like NVDA, AMD, AVGO, MSFT, ORCL, CRM, and SNOW can continue leadership. If CAPEX pauses, valuations compress.

Consumer spending resilience will shape discretionary stocks. This year appears selective — not weak, but choosy. Walmart (WMT) and Target (TGT) face mixed trends. Home Depot (HD) sees normalization. Costco (COST) thrives on affluent wallet share.

Institutions will monitor:

Friday’s scorecard keeps the bull case alive. Long-term investors can continue following the timeless rule:
Own pricing power, own free-cash-flow engines, and ignore daily fluctuations.

General Electric represents one of the most spectacular corporate turnarounds in American history — a shift from legacy sprawl to streamlined industrial excellence. The modern GE story is built around aerospace durability, industrial cash flow, defense credibility, and long-cycle service revenue.

GE Aerospace is the dominant franchise inside the company, and the unit has become one of the most powerful free-cash-flow engines in the global industrial universe. Jet engines are not a transactional business — they generate decades of maintenance, parts, service contracts, and recurring revenue. GE does not merely sell engines; it sells annuities tied to aviation.

The commercial aviation cycle has recovered materially from pandemic lows. International routes have reopened. Carriers are upgrading fleets. Every engine placed into a new aircraft represents 20–30 years of monetization. That is capital-market gold: long duration, high margin, and limited competition.

Defense spending adds ballast. GE participates in military-aviation programs that are not economically sensitive. Taxpayer-funded procurement stabilizes revenue, and geopolitical tension has elevated long-duration defense budgets. In a world where nations compete technologically and militarily, GE sits in a privileged monetization lane.

The company has also separated into focused entities — GE Vernova in energy transformation and GE Healthcare in medical-technology throughput. That means investors can now buy GE Aerospace without absorbing unrelated conglomerate overhead. Chris owns a significant allocation of GE because he recognizes these clean industrial lines as catalysts for multiple expansion. It is no longer “old GE.” It is precision-engineered, cash-rich GE.

The aerospace engine duopoly enhances competitive protection. Airlines rely heavily on maintenance ecosystems. Once a carrier selects a platform, switching becomes economically insane. That is pricing leverage. GE can raise service pricing because downtime is not optional.

Wall Street frequently undervalues industrial duration because it prefers narrative excitement. But cash-flow investors understand that GE is a toll road on global mobility. As tens of millions of passengers return to flight schedules, the industrial infrastructure expands.

The balance sheet is dramatically improved versus the lost decade of leverage and over-extension. GE retired debt, spun out unrelated segments, and sharpened capital allocation. CEO-level discipline is receiving recognition, and the shareholder base is rewarding rationality.

GE sits at the intersection of:

Chris owns GE because it aligns with every rule of serious investing: long-cycle revenue, pricing power, recurring cash, and a business the world cannot function without.

The BRRRR method — Buy, Rehab, Rent, Refinance, Repeat — remains one of the most effective wealth-acceleration models ever built for real-estate investors.

The “buy” phase begins with acquiring an undervalued property. Investors target distressed opportunities where simple improvements can unlock immediate equity. Auctions, motivated sellers, estate deals, or dated listings provide entry points. The objective is simple: buy below intrinsic value.

The “rehab” phase is where equity grows. Investors make strategic improvements that maximize tenant appeal and valuation. Kitchen modernization, flooring, fixtures, appliances, HVAC efficiency, exterior appeal, and bathroom upgrades can reposition a property at relatively low cost. The investor is not aiming to over-spec. Instead: enhance rentability and push appraisal levels.

The “rent” phase creates cash flow. A tenant funds mortgage service, insurance, maintenance reserves, and often still leaves a spread. Positive monthly cash flow converts the property from a liability into an income-producing asset. Cash flow is the bloodstream of the BRRRR system — without it, nothing compounds.

The “refinance” is where the magic becomes financial engineering. After improvements and stabilized rent rolls, the investor seeks a bank appraisal. The property is now more valuable. A refinance allows capital extraction — sometimes the majority of the original cost basis. That capital is recycled into the next acquisition.

The “repeat” phase is where wealth accelerates. The same dollars are deployed into multiple houses, amplifying ownership. Equity compounds. Cash flow multiplies. Provided loan-to-value ratios remain smart and tenants remain reliable, the investor now commands multiple properties funded originally by the same seed capital.

The BRRRR method works because it prioritizes:

This method has built millionaires because it creates a scalable architecture. Over 5–7 years, a disciplined investor can move from a single unit to a portfolio. Add tax benefits — depreciation, interest deduction, and in some cycles, bonus depreciation — and BRRRR competes with high-yield equities in after-tax returns.

Chris teaches this as a lifetime habit: never let your capital sit; recycle it.

Alphabet (GOOG) has delivered a +79.80% gain and sits in firm buy-territory with analysts, while Chris calls it a “buy” because of dominant advertising economics and growing cloud profitability. He owns Alphabet because global search monetization is nowhere near saturation. He also believes Google Cloud and AI infrastructure will become one of the most profitable software platforms on earth.

Amazon (AMZN) is up +9.29%, and despite short-term retail variability, Chris maintains a “buy” stance because AWS is expanding margins and global logistics remains irreplaceable. He owns Amazon because cloud dominance compounds for decades. He also sees advertising and subscription layers as long-run margin enhancers.

Apple (AAPL) has posted an +82.68% gain, and analysts continue to support the stock as a long-term buy, while Chris sits at “buy/hold” because Apple’s device ecosystem and services annuity keep cash flowing. He owns Apple because the iPhone installed base functions like an income stream. He also sees AI-enabled hardware as a long-term ARPU booster.

Costco (COST) is up 81.91%, and despite mixed valuation takes, analysts treat it as a durable compounder; Chris calls COST a “buy” because membership renewal rates are a retail moat. He owns Costco because it performs through recessions. He also believes affluent consumers will continue trading up, not down.

Deere (DE) has a +34.45% gain, and analysts show more cautious tones in cyclicals; Chris keeps it a “hold” because equipment demand moves with crop cycles and rates. He owns Deere because food production is non-optional. He also sees infrastructure spending as a multi-decade tailwind.

GE Aerospace (GE) is a major outperformer with a +207.99% gain, backed by bullish analyst lean, and Chris rates it a “strong buy” because aviation engines, parts, and services are cash machines with pricing power. He owns GE because the installed engine base guarantees revenue visibility. He also sees defense and commercial travel as dual growth engines.

GE Healthcare (GEHC) is up 0.68%, even though analysts show extremely strong buy signals; Chris calls it a “buy” because diagnostics and imaging revenue is essential. He owns GEHC because healthcare spending is non-cyclical. He also sees demographic aging as a built-in growth line.

GE Vernova (GEV) is the breakout star with a +549.73% gain and strong analyst support; Chris rates it a “strong buy” because electrification, grid modernization, and renewable infrastructure are massive capital-spend eras. He owns GEV because it is a pure-play on energy transition. He also sees government-funded demand as steel-reinforced upside.

Kroger (KR) is up 27.41%, widely viewed as a buy-leaning defensive, and Chris calls it a “hold/buy” because grocery baskets don’t disappear in recessions. He owns Kroger because food demand is price-inelastic. He also sees consolidation favoring efficient operators.

Meta Platforms (META) is showing a +13.65% gain, and analysts remain bullish on AI-driven advertising; Chris calls it a “buy” because WhatsApp B2B monetization hasn’t even started scaling. He owns META because it can compound free-cash-flow for a decade. He also sees social commerce as the next monetization wave.

Microsoft (MSFT) is the monster performer, up +569.41%, with analysts deeply bullish; Chris rates it a “strong buy” because Azure and enterprise AI create some of the safest high-growth cashflows in existence. He owns Microsoft because it is the backbone of business IT. He also sees Microsoft as the premier monetizer of AI infrastructure.

Procter & Gamble (PG) has a +78.46% gain, and analyst tone remains positive on staples; Chris calls it a “hold/buy” because consumer necessities create predictable cashflow. He owns PG because households never stop buying core products. He also uses PG as a volatility buffer.

Tesla (TSLA) is up +51.31%, near the top of its 52-week range as AI robotics, autonomous software, and energy-storage plans reshape expectations. Analysts sit mixed-to-optimistic, while Chris rates TSLA a “buy” because long-run innovation matters more than near-term pricing. He owns Tesla because it is evolving into an AI-driven industrial platform. He houses TSLA in a Roth to protect explosive future upside from taxation.

Amazon (AMZN) shows a +100.11% gain with strong buy-leaning sentiment, and Chris calls it a “buy.” He owns Amazon because it controls digital retail rails. He also sees AWS as early in monetization.

American Express (AXP) has a +125.89% gain, supported by premium-spender economics; Chris marks it a “buy/hold.” He owns AXP because affluent consumers are recession-resistant. He also likes fee-based economics.

Kinder Morgan (KMI) is up 77.62%, treated as a steady income utility; Chris calls it a “hold/buy.” He owns KMI because pipelines operate like toll roads. He values cashflow over volatility.

Verizon (VZ) is down 21.06%, with analyst caution; Chris calls it a “hold.” He owns VZ for income ballast. He sees it as a stabilizer, not a growth engine.

Exxon Mobil (XOM) has a +39.07% gain, often rated a buy-leaning value compounder; Chris marks it a “buy.” He owns Exxon because global energy demand persists. He also sees buybacks and dividends fueled by hydrocarbon profits.

Apple (AAPL) is up 152.27%, loved by analysts; Chris calls it “buy/hold.” He owns Apple because the iPhone base is an annuity. He expects AI hardware upgrades to boost revenue.

Nvidia (NVDA) is up 83.31%, overwhelmingly strong-buy; Chris rates it “strong buy.” He owns NVDA because it is the economic engine of AI. He expects CUDA to extend its moat.

Palantir (PLTR) is up +26.94%, with divided analyst sentiment; Chris calls it a “buy.” He owns PLTR because governments cannot replace its platforms. He expects commercial adoption to widen dramatically.

Tempus AI (TEM) is showing a –14.68% pullback, and Trip rates it “hold/speculate.” He owns it because precision-medicine AI has asymmetric upside. He is patient with binary biotech math.

Alibaba (BABA) has a +93.28% gain, and Trip rates it a “buy.” He owns BABA because China’s consumer economy is too large to ignore. He sees sentiment normalization as upside fuel.

CrowdStrike (CRWD) is up +117.1%, and Trip calls it a “strong buy.” He owns CRWD because cybersecurity is non-discretionary. He expects margin expansion as endpoint defense consolidates.

Broadcom (AVGO) shows a +139.83% gain, and Trip labels it a “strong buy.” He owns AVGO because it runs the plumbing of global compute. He values shareholder-return discipline.

MicroStrategy (MSTR) is at –5.06%, and Trip calls it “hold/speculate.” He owns it for embedded Bitcoin exposure. He sees asymmetric payoff potential.

GE Vernova (GEV) is the monster at +556.68%, and Trip rates it “strong buy.” He owns it because electrification is a 20-year cycle. He sees a grid rebuild that governments cannot avoid.

Microsoft (MSFT) is up +450.34%, and Trip rates it a “strong buy.” He owns Microsoft because Azure monetizes AI. He sees multidecade compounding.

Apple (AAPL) is up 138.84%, and Trip calls it “buy/hold.” He owns Apple because iOS is a toll road. He sees ARPU expansion via AI hardware.

Nvidia (NVDA) is up 65.36%, and Trip calls it a “strong buy.” He owns Nvidia because it is the global AI engine. He expects data-center dominance.

Meta (META) is up 14%, and Trip labels it a “buy.” He owns Meta because WhatsApp business messaging is untapped. He sees social commerce as a locked monetization future.

Tenaya Therapeutics (TNYA) is down 49.96%, and Frankie calls it “hold/speculate.” He owns it as a biotech lottery ticket. He understands clinical optionality.

Navitas Semiconductor (NVTS) is up 4.97%, and Frankie calls it “buy/hold.” He owns NVTS because power efficiency is a secular demand story. He sees upside in electrification.

GE Vernova (GEV) is up 556.68%, and Frankie calls it “strong buy.” He owns GEV because utilities are modernizing transmission. He sees multi-decade capital spend.

Nebius (NBIS) is up 5.53%, and Frankie calls it “buy/hold.” He owns NBIS because AI infrastructure is early in adoption. He sees international scaling.

Microsoft (MSFT) is up 334.55%, and Frankie labels it “strong buy.” He owns MSFT because it is enterprise AI plumbing. He sees Azure as margin power.

Tesla (TSLA) is up 61.81%, and Frankie labels it “buy.” He owns TSLA because robots and autonomy redefine margins. He sees software over steel.

Palantir (PLTR) is up 34.41%, and Frankie calls it “buy.” He owns PLTR because governments cannot unplug mission-critical systems. He expects commercial acceleration.

Aurora Innovation (AUR) is up 6.67%, and Frankie calls it “hold/buy.” He owns AUR because autonomous freight is a cost revolution. He sees logistics disruption.

Meta (META) is up 14%, and Frankie rates it “buy.” He owns META because global attention is an asset. He sees WhatsApp monetization as unlocked upside.

The Smart Wealth Newsletter is for informational and educational purposes only, reflecting personal opinions and publicly available data. Nothing in this publication constitutes financial, investment, tax, or legal advice. All investing carries risk, including the potential loss of principal. Past performance is not indicative of future results. Readers should perform their own due diligence and consult licensed professionals regarding their personal financial decisions.