Introduction – Chris, Trip & Frankie

Welcome to the January 18th edition of the Smart Wealth Newsletter. This newsletter is our family’s ongoing effort to document, explain, and share how we think about building long-term wealth through disciplined investing in stocks and real estate.

Chris leads our investing strategy with a focus on high-quality businesses, durable competitive advantages, and long-term compounding. Market cycles change, narratives rotate, but owning great businesses over time remains the foundation of his approach.

Trip, who attends the Freeman Business School at Tulane University, is actively applying his finance education to real-world investing. He focuses heavily on technology, infrastructure, and innovation-driven companies, including Rocket Lab (RKLB), which he owns personally and which we highlight in this issue.

Frankie, a senior at All Saints Academy, continues to build an impressive foundation in investing by studying companies, tracking performance, and learning how markets reward patience and discipline. His portfolio reflects a blend of emerging technology, AI, and long-term growth themes.

Let’s start with what happened in the markets last week.

Markets entered last week near record highs, but the tone quickly shifted from momentum-driven optimism to a more selective and rotational environment. By the close on Friday, January 16, 2026, the major indexes finished modestly lower, even as significant movement occurred beneath the surface.

At first glance, it looked like a quiet week. In reality, it was anything but. Last week was defined by rotation, stock-specific volatility, and shifting leadership, rather than broad index direction.

When markets trade near all-time highs, investor behavior changes. Capital becomes more selective. Earnings quality matters more than stories. Balance sheets matter more than hype. That dynamic was on full display last week.

The early stages of earnings season pulled investor attention away from macro speculation and toward company fundamentals. Stocks that delivered clean results, expanding margins, and confident guidance were rewarded. Companies that missed expectations—or even hinted at slowing growth—were sold aggressively.

This explains why index performance looked muted while individual stocks experienced sharp moves. The market is no longer rising on enthusiasm alone. It is demanding proof.

Interest rates continued to influence sentiment, but they were no longer the sole driver. Markets reacted to rate movements intraday, especially within growth and technology stocks, yet earnings quickly reclaimed center stage.

Rates now act as an amplifier rather than a dictator. Stable yields allow growth to breathe. Rising yields push investors toward defensiveness. That push-and-pull created the choppy, rotational feel last week.

Sector performance revealed where investors were actually placing capital.

Leaders last week included:

Lagging sectors included:

This leadership mix matters. Staples and real estate leading suggests investors are favoring cash flow and stability. Industrial strength reflects confidence in infrastructure, capital spending, and reshoring trends. Energy’s performance underscores ongoing geopolitical and supply sensitivity.

While large indexes drifted lower, small-cap stocks showed relative strength. This is an underappreciated but encouraging sign. Healthy markets broaden over time, and last week suggested participation beyond mega-cap names.

Last week rewarded discipline and punished complacency.

Stocks tied to strong earnings, cash generation, and clear demand signals outperformed.
Crowded trades and speculative names without earnings support struggled.

This is what a maturing bull market looks like. Easy gains fade. Selective gains remain.

Bottom line: By the close on January 16th, indexes were slightly lower, but the market beneath the surface remained constructive. This is not a market to fear—it is a market that rewards preparation and patience.

Rocket Lab represents one of the most compelling long-term growth opportunities in the public markets today, especially as space transitions from government-dominated exploration to commercialized infrastructure.

Trip owns Rocket Lab personally and follows the company closely as part of his focus on innovation-driven growth.

Rocket Lab has successfully carved out a niche in small-satellite launches, a segment underserved by heavy-lift competitors. Its Electron rocket provides dedicated launch capability, faster deployment timelines, and lower costs for customers that do not need excess payload capacity.

Importantly, Rocket Lab is not just a launch company. It has evolved into a full-stack space systems provider, generating revenue from launch services, satellite manufacturing, spacecraft components, and mission management solutions. This diversification reduces dependency on launch cadence alone and increases recurring revenue opportunities.

Government and defense contracts provide long-term visibility and credibility, while commercial demand continues to grow as satellite constellations expand for communications, Earth observation, and data services.

Rocket Lab’s engineering discipline, growing backlog, and expansion into in-orbit services position it as a foundational company within the modern space economy. For Trip, RKLB represents a blend of technological leadership, government validation, and long-term optionality.

Alphabet (GOOG) closed at $330.34, and Chris is up 92.46% on the position. Wall Street currently rates Alphabet a Strong Buy, and Chris also rates it a Strong Buy. Chris owns Alphabet for its dominant search franchise and rapidly expanding AI ecosystem across advertising, cloud, and enterprise services. He views Google as a long-term compounder with unmatched data advantages and pricing power.

Amazon (AMZN) closed at $239.12, and Chris is up 14.95% on the stock. Analysts maintain a Strong Buy consensus, and Chris rates Amazon a Buy. Chris owns Amazon for its leadership in e-commerce and cloud computing through AWS. He believes Amazon’s scale, logistics network, and AI-driven efficiency give it durable competitive advantages.

Apple (AAPL) closed at $255.53, with Chris up 70.57%. The average analyst rating is Buy, and Chris rates Apple a Buy. Chris owns Apple for its unmatched brand loyalty, recurring services revenue, and massive installed ecosystem. He views Apple as a cornerstone holding that blends innovation with dependable cash flow.

Costco (COST) closed at $963.61, and Chris is up 104.87%. Analysts rate Costco a Buy, and Chris also rates it a Buy. Chris owns Costco for its disciplined pricing model and loyal membership base. He believes Costco’s business model performs well in both strong and weak economic environments.

Deere & Company (DE) closed at $514.40, with Chris up 46.97%. Wall Street’s average rating is Buy, and Chris rates Deere a Buy. Chris owns Deere for its leadership in precision agriculture and exposure to long-term global food demand. He believes technology-driven farming solutions will continue to expand margins.

GE Aerospace (GE) closed at $325.12, and Chris is up 229.71%. Analysts rate GE Aerospace a Strong Buy, and Chris also rates it a Strong Buy. Chris owns GE Aerospace for its dominant position in jet engines and long-duration defense contracts. He believes aftermarket services provide powerful recurring revenue.

GE HealthCare Technologies (GEHC) closed at $81.75, with the position down 0.71%. Analysts rate GE HealthCare a Buy, while Chris currently rates it a Hold. Chris owns GE HealthCare for its installed base of diagnostic equipment and healthcare technology leadership. He is monitoring margin expansion and capital allocation before increasing exposure.

GE Vernova (GEV) closed at $681.55, and Chris is up 572.70%. Wall Street rates GEV a Strong Buy, and Chris rates it a Strong Buy. Chris owns GE Vernova for its exposure to electrification, grid modernization, and renewable energy infrastructure. He views the company as a long-term beneficiary of rising global power demand.

Kroger (KR) closed at $63.19, and Chris is up 29.01%. Analysts rate Kroger a Hold, while Chris rates it a Buy. Chris owns Kroger for its defensive characteristics and pricing power in food retail. He believes grocery demand remains resilient across economic cycles.

Meta Platforms (META) closed at $620.25, with Chris up 6.99%. Analysts rate Meta a Strong Buy, and Chris rates it a Buy. Chris owns Meta for its dominant social platforms and improving monetization through AI-driven advertising. He believes operating leverage will continue to boost earnings.

Microsoft (MSFT) closed at $459.86, and Chris is up 943.43%. Analysts rate Microsoft a Strong Buy, and Chris rates it a Strong Buy. Chris owns Microsoft for its leadership in enterprise software, cloud computing, and artificial intelligence. He believes Microsoft remains one of the highest-quality compounders in the market.

Procter & Gamble (PG) closed at $144.53, with Chris up 78.55%. Wall Street rates P&G a Buy, and Chris rates it a Buy. Chris owns Procter & Gamble for its portfolio of iconic brands and consistent dividend growth. He views P&G as a stabilizer during periods of market volatility.

Amazon (AMZN) closed at $239.12, and Chris is up 110.47%. Analysts rate Amazon a Strong Buy, and Chris rates it a Buy. Chris owns Amazon for its global scale in e-commerce and AWS cloud leadership. He believes AI integration will continue to drive efficiency and margin expansion.

American Express (AXP) closed at $364.79, with Chris up 118.86%. The average analyst rating is Buy, and Chris rates American Express a Buy. Chris owns American Express for its premium customer base and strong pricing power. He believes disciplined credit management supports long-term earnings growth.

Kinder Morgan (KMI) closed at $27.96, and Chris is up 87.48%. Analysts rate Kinder Morgan a Buy, and Chris also rates it a Buy. Chris owns Kinder Morgan for its fee-based pipeline business and steady cash flows. He views it as a reliable income-oriented holding.

Exxon Mobil (XOM) closed at $129.89, with Chris up 54.80%. Wall Street rates Exxon a Buy, and Chris rates it a Buy. Chris owns Exxon for its scale, disciplined capital allocation, and exposure to global energy demand. He believes the integrated model performs well across commodity cycles.

Tesla (TSLA) closed at $437.50, and Chris is up 37.57%. Analysts rate Tesla a Hold, while Chris rates it a Buy. Chris owns Tesla for its leadership in electric vehicles, batteries, and vertical integration. He believes long-term upside comes from scale, software, and energy storage.

Palantir Technologies (PLTR) closed at $170.96, and Chris is up 12.22%. Wall Street’s average analyst rating is Hold, while Chris rates Palantir a Buy. Chris owns Palantir for its entrenched government and enterprise AI platforms with high switching costs. He believes expanding AI adoption will drive sustained long-term growth.

Alibaba (BABA) closed at $165.40, and Trip is up 113.42%. Analysts rate Alibaba a Buy, and Trip rates it a Buy. Trip owns Alibaba as a contrarian value play with dominant e-commerce and cloud exposure. He believes improving efficiency and sentiment create meaningful upside.

Rocket Lab (RKLB) closed at $96.30, with Trip up 14.75%. Analysts rate Rocket Lab a Buy, and Trip rates it a Buy. Trip owns Rocket Lab for its leadership in small-satellite launches and growing space-systems business. He believes commercialization of space provides long-term visibility.

Strategy (MSTR) closed at $173.71, and the position is up 0.06%. Wall Street rates the stock a Hold, and Trip rates it a Hold. Trip owns Strategy for its leverage to Bitcoin through its corporate treasury strategy. He views it as a high-volatility satellite position.

CrowdStrike (CRWD) closed at $453.88, with Trip up 104.74%. Analysts rate CrowdStrike a Strong Buy, and Trip rates it a Buy. Trip owns CrowdStrike for its leadership in cybersecurity and recurring subscription revenue. He believes security spending remains non-cyclical.

Broadcom (AVGO) closed at $351.71, and Trip is up 148.30%. Wall Street rates Broadcom a Strong Buy, and Trip rates it a Strong Buy. Trip owns Broadcom for its semiconductor leadership and AI infrastructure exposure. He believes strong cash flow supports long-term compounding.

Chevron (CVX) closed at $166.26, with Trip up 7.12%. Analysts rate Chevron a Buy, and Trip rates it a Buy. Trip owns Chevron for disciplined capital allocation and exposure to global energy demand. He views it as a stabilizer during inflationary cycles.

GE Vernova (GEV) closed at $681.55, and Trip is up 579.90%. Wall Street rates GEV a Strong Buy, and Trip rates it a Strong Buy. Trip owns GE Vernova for electrification, grid modernization, and renewable infrastructure exposure. He believes rising power demand creates a multi-decade runway.

Microsoft (MSFT) closed at $459.86, with Trip up 420.82%. Analysts rate Microsoft a Strong Buy, and Trip rates it a Strong Buy. Trip owns Microsoft for its leadership in cloud, enterprise software, and AI. He believes it remains one of the best long-term compounders.

Apple (AAPL) closed at $255.53, and Trip is up 123.01%. Analysts rate Apple a Buy, and Trip rates it a Buy. Trip owns Apple for its ecosystem strength and recurring services revenue. He views it as a core long-term holding.

NVIDIA (NVDA) closed at $186.23, with Trip up 70.14%. Wall Street rates NVIDIA a Strong Buy, and Trip rates it a Strong Buy. Trip owns NVIDIA as the backbone of the AI and data-center revolution. He believes demand remains structural.

Meta Platforms (META) closed at $620.25, and Trip is up 7.33%. Analysts rate Meta a Strong Buy, and Trip rates it a Buy. Trip owns Meta for its dominant advertising platforms and improving efficiency. He believes AI will continue to enhance monetization.

Navitas Semiconductor (NVTS) closed at $10.91, and Frankie is up 46.64%. Analysts rate Navitas a Buy, and Frankie rates it a Buy. Frankie owns Navitas for its exposure to next-generation power semiconductors. He believes EVs and data centers drive long-term demand.

GE Vernova (GEV) closed at $681.55, and Frankie is up 579.90%. Wall Street rates GEV a Strong Buy, and Frankie rates it a Strong Buy. Frankie owns GE Vernova for its leadership in electrification and renewable energy. He believes global power demand supports long-term growth.

Nebius Group (NBIS) closed at $108.73, with Frankie up 28.26%. Analysts rate Nebius a Buy, and Frankie rates it a Buy. Frankie owns Nebius for its exposure to cloud infrastructure and AI services. He believes scalable computing demand continues to expand.

Microsoft (MSFT) closed at $459.86, and Frankie is up 311.25%. Wall Street rates Microsoft a Strong Buy, and Frankie rates it a Strong Buy. Frankie owns Microsoft for its dominance in enterprise software and AI. He views it as a foundational long-term compounder.

Tesla (TSLA) closed at $437.50, with Frankie up 47.12%. Analysts rate Tesla a Hold, while Frankie rates it a Buy. Frankie owns Tesla for its leadership in EVs and battery innovation. He believes software and scale provide long-term upside.

Palantir Technologies (PLTR) closed at $170.96, and Frankie is up 18.83%. Wall Street rates Palantir a Hold, and Frankie rates it a Buy. Frankie owns Palantir for its government and enterprise AI platforms. He believes AI adoption will continue driving growth.

Aurora Innovation (AUR) closed at $4.67, with Frankie up 19.74%. Analysts rate Aurora a Hold, and Frankie rates it a Speculative Buy. Frankie owns Aurora for its long-term autonomous driving potential. He views it as a high-risk, high-reward opportunity.

Meta Platforms (META) closed at $620.25, and Frankie is up 7.33%. Analysts rate Meta a Strong Buy, and Frankie rates it a Buy. Frankie owns Meta for its dominant social platforms and improving monetization. He believes AI-driven advertising will expand profitability.

Cost segregation is one of the most powerful, yet misunderstood, tax strategies available to real estate investors. When used properly, it can dramatically improve early-year cash flow and accelerate wealth creation.

Rather than depreciating an entire property over 27.5 years (residential) or 39 years (commercial), cost segregation identifies components that qualify for shorter depreciation lives—typically 5, 7, or 15 years. These components include flooring, lighting, wiring, plumbing, appliances, landscaping, and site improvements.

By accelerating depreciation, investors generate large non-cash deductions early in the life of a property. This reduces taxable income and keeps more capital working inside the investment.

Cost segregation can also be applied retroactively through a catch-up adjustment, allowing investors to reclaim depreciation they failed to take in prior years—often producing significant one-time tax benefits.

The strategy is particularly powerful for:

When combined with reinvestment strategies like BRRRR, refinancing, or 1031 exchanges, cost segregation becomes a cornerstone of tax-efficient real estate wealth building.

Done correctly, cost segregation is not aggressive—it is strategic. It rewards investors who understand the time value of money and prioritize cash flow early in the investment lifecycle.

As we move deeper into 2026, the takeaway is simple: markets will always fluctuate, narratives will always change, but long-term wealth is built through discipline, patience, and ownership of high-quality assets. Across Chris’s, Trip’s, and Frankie’s portfolios, the common thread is a focus on durable businesses, structural growth trends, and thoughtful risk management. Whether through stocks, real estate, or strategic tax planning, our goal remains the same—make informed decisions, stay invested through cycles, and let time and compounding do the heavy lifting.

This newsletter is for educational purposes only and does not constitute financial, investment, tax, or legal advice. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. Always consult with qualified financial, tax, and legal professionals before making investment decisions.