Welcome back to the Smart Wealth Newsletter! As this year winds down, our family remains focused on one mission: learning together, investing thoughtfully, and building wealth with discipline and patience.

Chris brings decades of experience in real estate, business building, and investing — along with many hard-earned lessons along the way. Trip is studying at the Freeman Business School at Tulane University, where he is gaining deeper insight into markets, finance, and entrepreneurship, and bringing that knowledge back into our family discussions. Frankie — a senior at All Saints Academy — continues to ask smart questions, analyze companies, and build the foundation of strong money habits that will last a lifetime.

We write this newsletter not simply to track investments, but to share what we’re learning and to show that thoughtful investing is something families can do together. Thank you for being part of that journey.

The final full trading week of the year ended quietly, but the story it told about the market was powerful. Despite high interest rates, ongoing inflation debates, persistent geopolitical concerns, and constant headlines, the stock market showed remarkable resilience throughout the year.

All three major U.S. indexes finished the period strongly positive.

The S&P 500 stayed near record levels, reflecting confidence in both earnings and the broader economy. The Dow Jones Industrial Average also posted strong gains, led by industrials, financials, and stable blue-chip names. The Nasdaq, powered heavily by technology, software, cybersecurity, and artificial intelligence-related companies, outperformed the broader market again.

The dominant narrative throughout the year can be summarized in a few key themes — themes that help explain why markets behaved the way they did and why long-term investors were rewarded.

At the beginning of the year, many economists predicted weakness, slowdown, or even recession. Higher borrowing costs were expected to choke off growth, cool hiring, and drag down consumer spending.

Instead, the economy adapted.

Consumers continued spending, even if more selectively. The job market stayed stronger than expected. Businesses focused on efficiency rather than panic, and many continued investing — especially in technology designed to improve productivity and lower operating costs.

Rather than breaking, the economy bent — and then stabilized.

Interest rates remained higher than the decade-long period investors grew used to. Early in the year, the focus was on how much higher they might climb.

As months passed, the storyline shifted.

Markets began focusing on when — not if — rates might eventually begin moving lower. That expectation matters, even before cuts actually happen. It influences corporate borrowing, investor psychology, stock valuations, and future planning.

Even with rates still elevated, confidence gradually replaced fear.

Artificial intelligence was not just a buzzword — it became a real business driver.

Companies tied to AI chips, cloud infrastructure, cybersecurity, and software automation saw increasing demand from virtually every sector. Hospitals, banks, logistics companies, manufacturers, and governments began adopting AI tools to increase efficiency and improve decision-making.

The market rewarded companies positioned at the center of this transformation. Many of our portfolio holdings benefited from this secular shift.

Despite hype cycles and headlines, earnings and cash flow ruled the day.

Companies that generated predictable profits, managed costs intelligently, strengthened balance sheets, and invested strategically continued to lead the market. Investors favored businesses with recurring revenue models, subscription income, and durable competitive advantages.

That trend is likely to continue.

For a while, critics argued that only a handful of mega-cap technology stocks were carrying the market.

By year-end, participation widened.

Industrials, financials, healthcare, and select consumer companies began contributing to gains. The healthiest markets are those where strength is shared broadly — and we began seeing signs of that shift.

As we enter 2026, there are still questions and risks. Inflation trends, economic data, earnings forecasts, and interest-rate policy will all matter. Volatility will not disappear.

But disciplined investors who stayed invested, avoided emotional decision-making, and focused on high-quality companies once again saw clear benefits.

The lesson remains consistent: long-term patience has historically beaten short-term guessing.

Few companies represent innovation, technology, and investing opportunity as clearly as NVIDIA. Once known primarily as a gaming graphics-chip maker, NVIDIA has become the backbone of global artificial intelligence computing.

Its chips now power AI training systems, autonomous vehicles, robots, medical research, financial modeling, logistics platforms, and nearly every major AI project in the world. More importantly, NVIDIA built an entire software ecosystem around its hardware, which makes switching to competitors difficult.

Data centers are expanding rapidly to support AI, and NVIDIA sits directly in the middle of that wave.

NVIDIA generates strong cash flow, reinvests intelligently, and maintains deep partnerships with the world’s largest technology companies. Although volatility comes with the territory, we view NVIDIA as a long-term compounder tied to one of the most transformational technology cycles of our lifetime.

That is why Chris owns a meaningful position — not as a short-term trade, but as a strategic long-term holding.

Closing Price: $314.96
Gain: +83.49% | Moderate Buy | Price Target: $660–$720

Alphabet dominates digital advertising while expanding rapidly into AI and cloud computing. Its strong cash flow supports continuous innovation and long-term value creation.

Closing Price: $232.52
Gain: +11.78% | Buy | Price Target: $195–$230

AWS is one of the most profitable cloud businesses in the world. Efficiency improvements across Amazon’s logistics network continue increasing margins.

Closing Price: $273.40
Gain: +82.50% | Strong Buy | Price Target: $210–$245

Apple’s ecosystem keeps customers loyal across multiple devices. Services and subscriptions continue to grow profitability.

Closing Price: $873.35
Gain: +85.68% | Buy | Price Target: $570–$640

Costco’s membership model drives recurring revenue. Disciplined management and strong brand trust create dependable performance.

Closing Price: $468.93
Gain: +33.98% | Hold / Moderate Buy | Price Target: $540–$600

Deere is benefiting from precision agriculture and automation. Technology in farming equipment improves productivity and supports long-term growth.

Closing Price: $315.14
Gain: +219.59% | Buy | Price Target: $390–$450

Travel recovery is driving aircraft engine demand. Maintenance contracts create recurring revenue streams.

Closing Price: $83.61
Gain: +1.55% | Hold | Price Target: $87–$95

Hospitals rely on imaging and diagnostics equipment. The business remains steady and essential.

Closing Price: $663.46
Gain: +554.84% | Strong Buy | Price Target: $685–$840

GE Vernova benefits from major investment in renewable energy and power infrastructure. Electrification is a multi-decade theme we want exposure to.

Closing Price: $63.25
Gain: +29.13% | Buy | Price Target: $65–$78

Grocery spending remains steady through all market cycles. Digital and private-label expansion improve profitability.

Closing Price: $663.29
Gain: +14.41% | Buy | Price Target: $450–$520

Meta continues improving advertising efficiency with AI. Strong free cash flow funds innovation and buybacks.

Closing Price: $487.71
Gain: +1,017.13% | Strong Buy | Price Target: $485–$550

Microsoft leads in AI productivity, enterprise software, and cloud computing. Recurring subscriptions create durable, compounding revenue.

Closing Price: $144.74
Gain: +78.81% | Buy | Price Target: $170–$195

Consumers rely on PG’s household brands every day. Dividends and pricing power support stability.

Closing Price: $232.52
Gain: +104.67% | Buy | Price Target: $195–$230

AWS expansion continues driving profits. Cost discipline strengthens earnings momentum.

Closing Price: $381.05
Gain: +128.61% | Moderate Buy | Price Target: $230–$260

Affluent cardholders spend consistently through economic cycles. Fee income supports recurring cash flow.

Closing Price: $17.19
Gain: +82.32% | Hold / Moderate Buy | Price Target: $19–$22

Kinder Morgan operates critical U.S. pipeline infrastructure. Stable cash flows support dividends.

Closing Price: $119.11
Gain: +41.95% | Buy | Price Target: $115–$130

Exxon remains profitable across commodity cycles. Disciplined capital spending supports shareholder returns.

Closing Price: $475.19
Gain: +49.43% | Hold / Moderate Buy | Price Target: $210–$260

Tesla is evolving into a robotics, battery, and automation company. Innovation outweighs short-term volatility.

Closing Price: $273.40
Gain: +152.03% | Strong Buy | Price Target: $210–$245

Apple’s loyal customer base drives repeat revenue. Services add significant profit growth.

Closing Price: $190.53
Gain: +92.98% | Strong Buy |

NVIDIA powers global AI infrastructure. Its software and hardware ecosystem creates long-lasting competitive advantages.

Closing Price: $188.71
Gain: +23.87% | Hold / Moderate Buy | Price Target: $189–$200

Palantir’s AI analytics software is embedded in defense and enterprise systems. Recurring contracts provide steady growth potential.

Closing Price: $62.70
Gain: –17.01% | Hold | Price Target: $45–$60

Trip views Tempus as an early-stage AI healthcare innovator. He is willing to hold through volatility for potential breakthrough opportunities.

Closing Price: $152.24
Gain: +96.44% | Moderate Buy | Price Target: $165–$190

Alibaba is recovering as regulatory pressure eases. Trip believes its cloud and commerce businesses still have meaningful upside.

Closing Price: $481.19
Gain: +117.06% | Strong Buy | Price Target: $365–$420

Cybersecurity spending continues to accelerate. Trip likes CrowdStrike’s subscription-based business model.

Closing Price: $352.13
Gain: +148.60% | Strong Buy | Price Target: $1,200–$1,350

Broadcom benefits from AI and networking demand. Strong cash flow supports long-term growth.

Closing Price: $158.81
Gain: –8.52% | Hold |

MicroStrategy offers leveraged Bitcoin exposure. Trip treats it as a speculative long-term position.

Closing Price: $663.46
Gain: +561.85% | Strong Buy | Price Target: $685–$840

Electrification and grid upgrades are major investment themes. GE Vernova sits at the center of this shift.

Closing Price: $487.71
Gain: +452.36% | Strong Buy | Price Target: $485–$550

Microsoft’s AI and cloud stack dominate enterprise computing. Its subscription revenue compounds steadily.

Closing Price: $273.40
Gain: +138.60% | Strong Buy | Price Target: $210–$245

Apple remains one of the world’s most profitable brands. Services continue adding significant margin growth.

Closing Price: $190.53
Gain: +74.07% | Strong Buy |

NVIDIA powers AI innovation worldwide. Trip views it as a foundational technology investment.

Closing Price: $663.29
Gain: +14.78% | Buy | Price Target: $450–$520

Meta continues generating strong profits while investing in AI capabilities. Trip believes monetization will expand over time.

Closing Price: $0.75
Gain: –46.12% | Hold | Price Target: $2–$3

This is a speculative biotech position. Frankie recognized the risk and he wiill sell this position for a tax loss.

Closing Price: $7.40
Gain: –0.54% | Moderate Buy | Price Target: $8–$11

Navitas produces power chips for EVs and renewable systems. Frankie believes electrification growth will benefit the company.

Closing Price: $663.46
Gain: +561.85% | Strong Buy | Price Target: $685–$840

Frankie likes exposure to global clean-energy infrastructure. Grid modernization should drive long-term demand.

Closing Price: $87.59
Gain: +3.33% | Hold | Price Target: $90–$105

NBIS is a young technology company with growth potential. Frankie keeps the position sized appropriately.

Closing Price: $487.71
Gain: +336.15% | Strong Buy | Price Target: $485–$550

Microsoft’s software suite remains essential worldwide. Frankie sees durable long-term compounding.

Closing Price: $475.19
Gain: +59.79% | Moderate Buy |

Tesla continues advancing AI, automation, and energy storage. Frankie accepts the volatility as part of the opportunity.

Closing Price: $188.71
Gain: +31.16% | Hold / Moderate Buy | Price Target: $189–$200

Palantir’s software is deeply embedded in mission-critical operations. Frankie believes recurring government and enterprise contracts will expand.

Closing Price: $4.00
Gain: +2.56% | Hold | Price Target: $4.50–$6.00

Autonomous driving could reshape transportation. Frankie treats AUR as a long-term speculative investment.

Closing Price: $663.29
Gain: +14.78% | Buy | Price Target: $450–$520

Meta continues to generate strong cash flow. AI-enhanced advertising tools strengthen its competitive position.

The final weeks of the year offer powerful opportunities for real-estate investors to improve their tax positions. Cost segregation studies can accelerate depreciation, creating deductions sooner rather than later. Investors considering property sales may benefit from 1031 exchanges, allowing capital to roll into new investments without realizing immediate tax liabilities.

Passive-loss rules should be reviewed, because correct classification and grouping strategies may unlock deductions that would otherwise remain idle. Opportunity Zones offer potential long-term incentives for reinvesting gains. Smart tax planning is not about chasing loopholes — it is about timing, structure, and alignment with long-term objectives.

The key takeaway: consult with a knowledgeable CPA before the year closes, not after.

This newsletter is for educational purposes only and does not constitute financial, investment, tax, or legal advice. Investing and real estate involve risks, including possible loss of principal. Always consult qualified financial and tax professionals before making decisions.