Happy New Year — and welcome to the January 4th edition of the Smart Wealth Newsletter. Our mission remains simple: to share what we’re learning, highlight opportunities, and help you build smarter wealth through consistency and education.

We believe wealth isn’t built overnight — it’s built through patience, discipline, and informed decision-making over time.

The first week of a brand-new year often feels like a clean slate. Portfolios reset. Funds reposition. Investors look ahead and begin weighing risks against opportunity again. The trading week ending Friday, January 2 reflected that dynamic — a combination of optimism, caution, and a willingness to rotate money without abandoning the market entirely. What we saw wasn’t fear. It was recalibration.

By Friday’s closing bell:

For the week overall:

At first glance that looks weak. But underneath, the action was more constructive than it appeared. The market wasn’t breaking — it was digesting. After strong gains heading into year-end, investors simply wanted clearer catalysts before pushing prices higher.

Money moved, but it didn’t leave. Funds trimmed positions in mega-cap technology and reallocated into areas positioned for the next phase of growth:

Rotating capital is a sign of confidence. In weak markets, everything sells. In healthy markets, leadership simply shifts.

Many funds came into the year sitting on large unrealized gains. January is when risk gets reset, allocations rebalanced, and gains harvested. Lighter holiday volume magnified what were essentially normal portfolio adjustments.

Even when quiet, the Fed remains the compass. With the 10-year Treasury near 4%, investors are asking:

Growth tech, real estate, utilities — all continue to track expectations around interest rates. That tug-of-war will shape markets for months.

Holiday weeks mean fewer active traders. When participation drops, price swings stretch more than they should. As normal volume returns, volatility generally settles — which is why experienced investors rarely overreact in early January.

The shared theme: digital infrastructure. Investors aren’t just chasing software — they’re buying the hardware, networking, and storage systems required to power AI and cloud-based computing.

These weren’t signals of collapsing businesses — they reflected valuation resets and profit-taking.

Breadth is improving. More sectors are participating. Markets built on broad participation tend to be more durable.

The well-known “Santa Claus rally” was muted this year. Historically, that often means capital is repositioning — not fleeing risk entirely. As we move deeper into Q1, the tone gradually shifts from seasonal patterns toward fundamentals again.

Major indexes are holding above important moving averages. Selling pressure appears orderly, not panicked. When markets digest gains at higher levels instead of retreating sharply, it often lays the groundwork for eventual upside.

Patience continues to beat prediction.

Institutional money is gravitating toward companies with:

Lower-quality names lag — and that’s precisely what long-term investors prefer seeing. Sustainable markets reward fundamentals.

This week was:

not the beginning of panic.

Large investors rotated positions instead of exiting entirely. Leadership broadened. Capital flowed toward companies solving real economic needs.

The message to disciplined investors is clear:

Stay focused on quality. Stay patient. Ignore the noise.

Microsoft remains one of the most strategically positioned companies in global tech. It is diversified, disciplined, and consistently profitable — and it continues evolving with the next generation of computing. Our family — Chris, Trip, and Frankie — owns Microsoft because it offers a rare combination of innovation, resilience, and financial strength.

As companies migrate from local servers to cloud platforms, Azure captures long-term recurring revenue. Once integrated, switching systems becomes costly and disruptive — creating powerful customer stickiness and pricing leverage.

Microsoft didn’t just hype AI — it built AI directly into:

Businesses willingly pay for tools that reduce costs and increase output. AI has become a revenue engine — not simply a headline.

Outlook, Teams, SharePoint, Office, analytics tools — Microsoft sits at the center of how companies communicate and operate. That dependence produces consistent cash flow even through economic slowdowns.

Microsoft generates enormous free cash flow, allowing it to:

Few companies balance expansion and shareholder discipline this effectively.

Between AI, cybersecurity, enterprise software, gaming, and cloud infrastructure, Microsoft possesses multiple growth engines. Pullbacks will occur — but structurally, the company remains positioned as a long-term core holding.

Buy • Rehab • Rent • Refinance

The BRRR strategy helps real estate investors expand portfolios by repeatedly recycling the same capital. When executed carefully, it accelerates wealth building without constantly injecting new cash.

The key is acquiring properties below market value — typically with cosmetic or functional issues — where targeted improvements create measurable equity. Numbers matter more than emotions.

Renovations should focus on upgrades that increase value and rent:

The goal isn’t luxury — it’s efficient, value-adding improvement.

After rehab, the property is stabilized through dependable tenants. Positive cash flow and consistent occupancy become the foundation for long-term success.

With increased property value and stable rents, refinancing allows equity extraction without selling. That capital can then be deployed into the next project — starting the cycle again.

BRRR compounds equity, produces rental income, and grows ownership — all while keeping capital moving. It requires patience, realistic budgeting, conservative underwriting, and willingness to manage projects. Done correctly, it becomes a repeatable wealth-building system.

Alphabet (GOOG) — up +83.70%. Analyst rating Buy. Chris rating Buy.
He owns Alphabet because search and advertising remain incredibly profitable while AI expands future opportunity. He values Alphabet’s strong free cash flow and minimal reliance on debt.

Amazon (AMZN) — up +8.89%. Analyst rating Buy. Chris rating Buy.
He owns Amazon because AWS dominates cloud computing and drives high-margin growth. He also believes Amazon’s logistics system creates an unmatched competitive moat.

Apple (AAPL) — up +80.90%. Analyst view Hold/Buy. Chris rating Hold.
He owns Apple because the ecosystem produces repeat customers and reliable service revenue. He appreciates its shareholder returns, even if growth is moderating.

Costco (COST) — up +81.67%. Analyst rating Buy. Chris rating Buy.
He owns Costco because the membership model generates predictable revenue. He also respects the company’s disciplined, long-term culture.

Deere (DE) — up +33.37%. Analyst rating Buy. Chris rating Hold.
He owns Deere because it leads precision agriculture technology. He prefers to hold through industry cycles rather than chase short-term swings.

GE Aerospace (GE) — up +225.28%. Analyst rating Buy. Chris rating Buy.
He owns GE Aerospace because ongoing aircraft demand supports engine manufacturing and servicing. He believes aviation recovery offers multi-year earnings potential.

GE Healthcare (GEHC) — up +0.59%. Analyst rating Hold. Chris rating Hold.
He owns GE Healthcare due to steady demand for medical imaging and diagnostics. He sees it as defensive rather than aggressive growth.

GE Vernova (GEV) — up +570.72%. Analyst rating Buy. Chris rating Buy.
He owns GE Vernova because it is positioned within renewable power and grid modernization. He believes the global push toward cleaner energy strongly favors companies like this.

Kroger (KR) — up +28.54%. Analyst rating Hold. Chris rating Hold.
He owns Kroger because grocery demand remains stable in any economy. He values its role as a defensive anchor inside the portfolio.

Meta (META) — up +12.19%. Analyst rating Buy. Chris rating Buy.
He owns Meta because digital advertising continues expanding profitably. He also believes AI tools will unlock more revenue opportunities.

Microsoft (MSFT) — up +973.10%. Analyst rating Strong Buy. Chris rating Buy.
He owns Microsoft because it leads cloud, AI, and enterprise software. He values its cash flow, discipline, and long-term relevance.

Procter & Gamble (PG) — up +75.16%. Analyst rating Hold. Chris rating Hold.
He owns PG because it sells everyday essentials people always need. He appreciates the dependable dividend history.

Amazon (AMZN) — up +99.37% — Buy / Buy.
He owns Amazon for its logistics strength and cloud dominance. He believes AWS remains a powerful compounding engine.

American Express (AXP) — up +123.62% — Buy / Buy.
He owns AXP because premium cardholders spend steadily. He values predictable fees and lending revenue.

Kinder Morgan (KMI) — up +85.80% — Hold / Hold.
He owns Kinder Morgan for pipeline infrastructure stability. He views it primarily as an income position.

Verizon (VZ) — down –19.67% — Hold / Hold.
He owns Verizon for defensive balance and dividend consistency. Growth is slower, but reliability matters.

Exxon Mobil (XOM) — up +46.17% — Hold-to-Buy / Buy.
He owns Exxon because global energy demand remains strong. He values its cash generation and dividend strength.

Tesla (TSLA) — up +37.76% — Hold / Buy.
He owns Tesla for its leadership in EVs, batteries, and energy storage. He believes autonomous technology could unlock even greater value.

Apple (AAPL) — up +149.82% — Hold/Buy — Hold.
He owns Apple for ecosystem loyalty and recurring revenue. He values disciplined capital returns.

NVIDIA (NVDA) — up +91.27% — Buy — Buy.
He owns NVIDIA because it powers AI and advanced computing. He believes AI demand is still early in its growth cycle.

Palantir (PLTR) — up +10.19% — Hold / Buy.
He owns Palantir because its platforms are deeply embedded in government and enterprise AI systems. He believes recurring contracts create durable growth.

Alibaba (BABA) — up +100.95% — Buy / Hold.
Trip owns Alibaba for international e-commerce exposure. He is cautious due to regulatory uncertainties.

CrowdStrike (CRWD) — up +104.60% — Strong Buy / Buy.
He owns CrowdStrike because cybersecurity demand keeps expanding. He likes its recurring subscription model.

Broadcom (AVGO) — up +145.42% — Buy / Buy.
He owns Broadcom because it benefits from AI, networking, and cloud infrastructure. He appreciates its growth plus income combination.

MicroStrategy (MSTR) — down –9.48% — Hold / Hold.
He owns MicroStrategy for indirect Bitcoin exposure. He recognizes it’s volatile and is holding, not adding.

GE Vernova (GEV) — up +577.40% — Buy / Buy.
He owns GE Vernova for renewable energy exposure. He believes infrastructure upgrades will continue supporting growth.

Microsoft (MSFT) — up +435.64% — Strong Buy / Buy.
He owns Microsoft because of cloud dominance and AI leadership. He believes its relevance will persist long term.

Apple (AAPL) — up +136.52% — Hold/Buy / Hold.
He owns Apple for ecosystem loyalty. He prefers to hold rather than add at high valuations.

NVIDIA (NVDA) — up +72.54% — Strong Buy / Buy.
He owns NVIDIA because it powers AI, gaming, and data centers. He believes its growth runway remains strong.

Meta (META) — up +12.55% — Buy / Buy.
He owns Meta because digital advertising remains highly profitable. He sees AI tools enhancing monetization.

Navitas Semiconductor (NVTS) — up +12.63% — Buy / Buy.
Frankie owns Navitas because it develops energy-efficient power chips. He likes its role in EV chargers and renewable hardware.

GE Vernova (GEV) — up +577.40% — Buy / Buy.
He owns GE Vernova due to the global shift toward renewable energy. He believes infrastructure spending will support growth.

Nebius Group (NBIS) — up +6.11% — Hold / Hold.
He owns Nebius for exposure to emerging tech outside the U.S. He is watching performance carefully.

Microsoft (MSFT) — up +322.94% — Strong Buy / Buy.
He owns Microsoft because it leads in cloud and productivity software. He believes it remains essential to business.

Tesla (TSLA) — up +47.31% — Hold / Buy.
He owns Tesla due to long EV adoption trends. He also likes advancements in energy storage and autonomy.

Palantir (PLTR) — up +16.67% — Hold / Buy.
He owns Palantir because of its defense and government analytics footprint. He believes AI-driven decision platforms will grow.

Aurora Innovation (AUR) — down –0.77% — Hold / Hold.
He owns Aurora for speculative autonomous driving exposure. He recognizes the risk and is holding carefully.

Meta (META) — up +12.55% — Buy / Buy.
He owns Meta due to strong advertising economics. He thinks AI will unlock additional revenue channels.

This newsletter is for educational purposes only. It is not financial, investment, tax, or legal advice. Investing involves risk, including possible loss of principal. Always conduct your own research and consult qualified professionals. Past performance does not guarantee future results.