By Chris, Trip, and Frankie McLaughlin

Welcome to the January 25th edition of the Smart Wealth Newsletter, where we share our family’s real-world journey through investing, markets, and long-term wealth creation. This newsletter is written together as a family and reflects three different perspectives, three different portfolios, and one shared philosophy: long-term discipline beats short-term noise.

Chris focuses on building wealth through high-quality equities and real estate strategies centered on compounding, tax efficiency, and durable cash flow. Trip, who attends the Freeman School of Business at Tulane University, approaches investing with a structured, analytical mindset shaped by formal finance education and hands-on portfolio management. Frankie, a senior at All Saints Academy, actively manages his own Schwab account and has developed a strong interest in technology, semiconductors, artificial intelligence, and emerging growth companies.

As markets move deeper into 2026, volatility has returned in pockets, but opportunity remains abundant for patient investors. In this issue, we break down exactly what happened in the financial markets through Friday’s close on January 23, 2026, provide a deep dive on Navitas Semiconductor, present every holding across Chris’s portfolio in full, and then continue with Trip’s and Frankie’s portfolios and an in-depth Real Estate Corner.

The financial markets closed the week ending Friday, January 23, 2026, in a state of controlled tension. Stocks remain historically strong, yet the market is no longer forgiving. Investors are still willing to own risk, but only selectively, and only when earnings quality, balance sheets, and long-term narratives hold up under scrutiny.

At the close on Friday, the Dow Jones Industrial Average finished at 49,098.71, the S&P 500 closed at 6,915.61, and the Nasdaq Composite ended at 23,501.24. These levels place all three major indexes near record territory, but the path to those levels has become more uneven.

The Dow declined on Friday while the S&P 500 and Nasdaq posted modest gains. This divergence has become a recurring theme and reflects where investors are placing capital. Money continues to flow toward technology, innovation, and long-duration growth, while more cyclical, interest-rate-sensitive, and industrial components of the market face intermittent selling pressure.

For the week as a whole, performance was modestly negative. The S&P 500 fell roughly 0.4%, the Dow declined about 0.5%, and the Nasdaq slipped approximately 0.1%. This marked the second consecutive week of mild pullbacks. Importantly, this was not panic selling. It was consolidation, a necessary phase in any long-term bull market.

Earnings season was the dominant driver of sentiment. While many companies met or exceeded expectations, the market demonstrated clearly that simply beating estimates is no longer enough. Forward guidance, margin outlooks, and management commentary drove price action far more than headline EPS numbers. Companies that failed to deliver clarity or confidence were repriced lower quickly.

Technology earnings once again set the tone. Artificial intelligence remains the central investment narrative of this cycle, but investors are becoming more selective about who truly benefits. The market is now asking harder questions: which companies can monetize AI sustainably, which are merely riding hype, and which face rising costs without commensurate revenue growth.

Interest rates remained an important backdrop. Treasury yields stayed elevated but stable, allowing equities to function without systemic stress. The market has largely accepted that rates may remain higher for longer, and the obsession with imminent Federal Reserve cuts has faded. Instead, investors are focusing on whether earnings growth can persist under tighter financial conditions.

Inflation data reinforced this shift. Inflation remains above long-term targets but is no longer accelerating. Wage growth has moderated, supply chains have normalized, and pricing pressures, while present, have cooled. This environment supports the increasingly favored “soft landing” narrative.

The labor market continues to show resilience, but normalization is underway. Job growth has slowed from post-pandemic peaks, participation rates have improved, and wage inflation has eased. This balance allows economic growth to continue without reigniting runaway inflation.

A key development during the week was the widening gap between large-cap and small-cap stocks. Smaller companies struggled more noticeably, reflecting higher sensitivity to borrowing costs and economic uncertainty. Investors clearly prefer companies with strong balance sheets, pricing power, and recurring revenue streams.

Geopolitical and trade-related headlines resurfaced, reminding markets how quickly sentiment can change when supply chains or tariffs enter the discussion. Even without immediate policy action, uncertainty alone can suppress valuations and slow capital investment.

Gold prices moved higher, signaling continued demand for hedges, while the U.S. dollar softened modestly, providing some relief to multinational companies. These cross-asset signals suggest investors remain cautious even as equities hold near highs.

Despite the weekly decline, year-to-date performance remained positive across all major indexes. This helps explain why selling pressure has remained orderly. Investors are reallocating, not exiting.

Overall, the market environment as of January 23, 2026, reflects a healthy but disciplined bull market. Leadership is narrowing, fundamentals matter more, and patience is being rewarded. For long-term investors, this is not a warning sign—it is a necessary pause that often precedes the next sustained advance.

Navitas Semiconductor (NVTS) is one of the most compelling emerging technology companies in the power semiconductor space. The company focuses on gallium nitride (GaN) and silicon carbide (SiC) technologies, which offer dramatically higher efficiency than traditional silicon-based power solutions.

These materials allow for faster charging, smaller and lighter power adapters, reduced heat generation, and lower overall energy loss. As global electricity demand rises, efficiency is no longer optional. It is mission-critical.

Frankie owns NVTS in his Schwab account and is up over 36% since his purchase, demonstrating early conviction in a long-term technological shift. While NVTS can be volatile due to its smaller size and growth-stage profile, volatility is often the price paid for transformational upside.

Data centers supporting AI workloads face unprecedented power constraints. Electric vehicles require improved power management to increase range and reduce charging times. Consumer electronics manufacturers are racing to deliver smaller, faster chargers without overheating. Navitas directly addresses each of these challenges.

The company operates an asset-light model, focusing on design and intellectual property rather than capital-intensive fabrication. This allows Navitas to scale efficiently while allocating capital toward innovation and customer acquisition.

Design wins across automotive, industrial, and consumer markets continue to expand. Once designed into a product, power semiconductors often remain for the life of that product, creating multi-year revenue visibility.

Navitas also benefits from significant barriers to entry. Power semiconductors require long qualification cycles and extreme reliability. This protects incumbents and rewards companies that execute consistently.

For investors willing to tolerate volatility, NVTS represents a long-term opportunity tied to electrification, AI infrastructure, and global energy efficiency.

Microsoft Corporation (MSFT) closed at $465.95, and Chris is up approximately 957%. Analysts rate the stock Strong Buy with a price target near $650, and Chris rates it Strong Buy. He likes Microsoft for its cloud dominance, enterprise software leadership, and deep AI integration, viewing it as a cornerstone holding for long-term compounding.

Alphabet Inc. (GOOG) closed at $328.43, and Chris is up about 91%. Analysts rate it Strong Buy with a target near $345, and Chris rates it Strong Buy. He likes Alphabet for its search dominance, growing cloud platform, and massive AI optionality supported by strong free cash flow.

Amazon (AMZN) closed at $239.16, and Chris is up roughly 111%. Analysts rate it Strong Buy with a target near $285, and Chris rates it Buy. He likes Amazon for improving margins, AWS leadership, and its rapidly expanding advertising business.

Apple Inc. (AAPL) closed at $248.04, and Chris is up approximately 129%. Analysts rate it Buy with a target near $295, and Chris rates it Buy. He likes Apple for its ecosystem strength, pricing power, and growing services revenue.

NVIDIA Corporation (NVDA) closed at $187.67, and Chris is up about 90%. Analysts rate it Strong Buy with a target near $230, and Chris rates it Strong Buy. He likes NVIDIA as the backbone of AI computing and data-center acceleration.

GE Vernova (GEV) closed at $657.78, and Chris is up approximately 549%. Analysts rate it Strong Buy with a target near $1,000, and Chris rates it Strong Buy. He likes GE Vernova as a pure-play on electrification, grid modernization, and energy infrastructure.

GE Aerospace (GE) closed at $293.87, and Chris is up roughly 198%. Analysts rate it Strong Buy with a target near $370, and Chris rates it Strong Buy. He likes GE Aerospace for its dominant aircraft engine franchise and long-term service contracts.

GE Healthcare (GEHC) closed at $79.77, and Chris is down about 3%. Analysts rate it Buy with a target near $95, and Chris rates it Hold. He likes its defensive healthcare exposure but remains patient near-term.

Costco Wholesale (COST) closed at $983.25, and Chris is up approximately 109%. Analysts rate it Buy with a target near $1,050, and Chris rates it Strong Buy. He likes Costco’s membership model, pricing discipline, and operational excellence.

Deere & Company (DE) closed at $514.43, and Chris is up about 47%. Analysts rate it Buy with a target near $560, and Chris rates it Buy. He likes Deere for its leadership in precision agriculture and automation.

Meta Platforms (META) closed at $658.76, and Chris is up roughly 14%. Analysts rate it Strong Buy with a target near $720, and Chris rates it Buy. He likes Meta’s global scale and improving cost discipline.

Palantir Technologies (PLTR) closed at $169.60, and Chris is up about 11%. Analysts rate it Buy with a target near $190, and Chris rates it Buy. He likes Palantir’s expanding role in AI-driven data analytics.

American Express (AXP) closed at $361.69, and Chris is up approximately 117%. Analysts rate it Buy with a target near $395, and Chris rates it Buy. He likes its premium customer base and pricing power.

Kinder Morgan (KMI) closed at $29.57, and Chris is up about 98%. Analysts rate it Buy with a target near $33, and Chris rates it Buy. He likes its stable cash flows and energy infrastructure assets.

Exxon Mobil (XOM) closed at $134.97, and Chris is up roughly 61%. Analysts rate it Buy with a target near $150, and Chris rates it Buy. He likes Exxon’s disciplined capital allocation and strong free cash flow.

Kroger (KR) closed at $64.25, and Chris is up about 31%. Analysts rate it Hold with a target near $68, and Chris rates it Hold. He views it as a defensive stabilizer.

Procter & Gamble (PG) closed at $150.15, and Chris is up approximately 85%. Analysts rate it Buy with a target near $165, and Chris rates it Buy. He likes its brand strength and defensive characteristics.

Tesla Inc. (TSLA) closed at $449.06, and Chris is up about 41%. Analysts rate it Hold with a target near $475, and Chris rates it Buy. He likes Tesla’s innovation, software margins, and long-term AI optionality.

Alibaba Group Holding (BABA) closed at $173.23, and Trip is up approximately 124%. Analysts rate the stock Buy with a price target near $220, and Trip rates it Buy. He likes Alibaba for its dominant position in Chinese e-commerce and believes regulatory pressure has largely peaked. He views the company as a long-term value opportunity with improving margins and cloud growth.

Rocket Lab (RKLB) closed at $88.90, and Trip is up about 6%. Analysts rate the stock Buy with a target near $110, and Trip rates it Buy. He likes Rocket Lab for its growing role in commercial space launches and satellite infrastructure. He believes vertical integration and recurring government and commercial demand provide long-term growth.

Strategy / MicroStrategy (MSTR) closed at $163.11, and Trip is down approximately 6%. Analysts rate the stock Hold with a target near $175, and Trip rates it Hold. He views MSTR primarily as leveraged exposure to Bitcoin rather than a traditional operating business. He holds it for crypto optionality while accepting elevated volatility.

CrowdStrike Holdings (CRWD) closed at $452.49, and Trip is up approximately 104%. Analysts rate the stock Strong Buy with a target near $520, and Trip rates it Strong Buy. He likes CrowdStrike for its leadership in endpoint security and subscription-based revenue model. He believes cybersecurity spending remains a top enterprise priority.

Broadcom Inc. (AVGO) closed at $320.05, and Trip is up approximately 126%. Analysts rate the stock Strong Buy with a target near $370, and Trip rates it Strong Buy. He likes Broadcom for its dominant semiconductor franchises and growing software exposure. He believes AI-driven demand and pricing power support long-term compounding.

Chevron Corporation (CVX) closed at $166.72, and Trip is up about 7%. Analysts rate the stock Buy with a target near $185, and Trip rates it Buy. He likes Chevron for its strong balance sheet and disciplined capital allocation. He views it as a stable energy holding with reliable cash flow.

GE Vernova (GEV) closed at $657.78, and Trip is up an exceptional 556%. Analysts rate the stock Strong Buy with a target near $1,000, and Trip rates it Strong Buy. He likes GE Vernova as a pure-play on electrification, grid modernization, and renewable infrastructure. He believes the company sits at the center of the global energy transition.

Microsoft Corporation (MSFT) closed at $465.95, and Trip is up approximately 428%. Analysts rate the stock Strong Buy with a target near $650, and Trip rates it Strong Buy. He likes Microsoft for its cloud leadership and deep AI integration across enterprise software. He views it as one of the most durable long-term compounders in the market.

Apple Inc. (AAPL) closed at $248.04, and Trip is up approximately 116%. Analysts rate the stock Buy with a target near $295, and Trip rates it Buy. He likes Apple for its ecosystem strength, customer loyalty, and recurring services revenue. He believes pricing power supports steady long-term growth.

NVIDIA Corporation (NVDA) closed at $187.67, and Trip is up approximately 71%. Analysts rate the stock Strong Buy with a target near $230, and Trip rates it Strong Buy. He likes NVIDIA as the backbone of AI computing and data-center acceleration. He believes demand for high-performance chips will remain strong for years.

Meta Platforms Inc. (META) closed at $658.76, and Trip is up approximately 14%. Analysts rate the stock Strong Buy with a target near $720, and Trip rates it Buy. He likes Meta for its massive global user base and improving operating efficiency. He believes AI-driven engagement and advertising recovery support long-term upside.

Navitas Semiconductor (NVTS) closed at $10.17, and Frankie is up approximately 37%. Analysts rate the stock Buy with a target near $14, and Frankie rates it Buy. He likes Navitas for its leadership in gallium nitride power semiconductors used in EVs, fast charging, and data centers. He believes energy efficiency will drive long-term adoption.

GE Vernova (GEV) closed at $657.78, and Frankie is up approximately 556%. Analysts rate the stock Strong Buy with a target near $1,000, and Frankie rates it Strong Buy. He likes the company’s exposure to electrification, renewables, and grid infrastructure. He believes global energy demand supports decades of growth.

Nebius Group (NBIS) closed at $94.50, and Frankie is up approximately 11%. Analysts rate the stock Buy with a target near $120, and Frankie rates it Buy. He likes Nebius for its exposure to AI infrastructure and cloud services. He believes AI spending trends support long-term growth.

Microsoft Corporation (MSFT) closed at $465.95, and Frankie is up approximately 317%. Analysts rate the stock Strong Buy with a target near $650, and Frankie rates it Strong Buy. He likes Microsoft for its cloud dominance and AI integration. He views it as one of the safest long-term technology investments.

Tesla Inc. (TSLA) closed at $449.06, and Frankie is up approximately 51%. Analysts rate the stock Hold with a target near $475, and Frankie rates it Buy. He likes Tesla for its innovation, software margins, and leadership in electric vehicles. He believes autonomy and AI provide long-term optionality.

Palantir Technologies (PLTR) closed at $169.60, and Frankie is up approximately 18%. Analysts rate the stock Buy with a target near $190, and Frankie rates it Buy. He likes Palantir for its expanding role in AI-driven data analytics across government and commercial clients. He believes customer stickiness supports long-term growth.

Aurora Innovation (AUR) closed at $4.58, and Frankie is up approximately 17%. Analysts rate the stock Buy with a target near $7, and Frankie rates it Buy. He likes Aurora for its focus on autonomous trucking and logistics efficiency. He believes self-driving freight could reshape transportation economics.

Meta Platforms Inc. (META) closed at $658.76, and Frankie is up approximately 14%. Analysts rate the stock Strong Buy with a target near $720, and Frankie rates it Buy. He likes Meta’s scale, AI-driven engagement, and improving cost discipline. He believes advertising growth supports long-term upside.

One of the greatest advantages real estate investors have over traditional stock investors is the power of depreciation. Depreciation allows investors to deduct a non-cash expense while the underlying property may actually be appreciating in value. This concept alone explains why real estate has created more millionaires than almost any other asset class.

Depreciation exists because the IRS assumes that buildings wear out over time. Residential rental properties are depreciated over 27.5 years, while commercial properties are depreciated over 39 years. Although land itself is not depreciable, the structure and many internal components are. This creates a predictable annual deduction that reduces taxable income year after year.

What makes depreciation so powerful is that it does not reduce cash flow. A rental property may generate strong monthly income while showing little or no taxable income on paper. An investor could earn $40,000 in net rental income and deduct $30,000 in depreciation, leaving only $10,000 of taxable income. In some cases, depreciation can fully offset rental income altogether.

This is where real estate separates itself from stocks. Dividends are taxable. Capital gains are taxable. Depreciation allows real estate investors to legally shelter income while still collecting cash. Over time, this dramatically increases after-tax returns and accelerates wealth accumulation.

Depreciation becomes even more powerful through cost segregation. Cost segregation breaks a property into components with shorter useful lives such as flooring, wiring, plumbing, appliances, and fixtures. Instead of depreciating everything over decades, many components can be depreciated over 5, 7, or 15 years, front-loading deductions into the early years of ownership.

This acceleration matters because a dollar saved in taxes today is worth more than a dollar saved ten years from now. Front-loaded depreciation allows investors to keep more capital early in the investment cycle, which can then be reinvested into additional properties, renovations, or debt reduction.

Depreciation also pairs extremely well with real estate professional status and active participation rules. Investors who qualify may be able to use real estate losses to offset other income such as W-2 wages or business income. This can create enormous tax savings for high-income households.

Many investors worry about depreciation recapture, which technically occurs when a property is sold. However, sophisticated investors often avoid recapture through 1031 exchanges, rolling gains and depreciation into new properties. By continuously exchanging, investors can defer taxes indefinitely.

In many cases, depreciation is never fully repaid. If properties are held until death, heirs often receive a step-up in basis, effectively eliminating accumulated depreciation and capital gains. This makes real estate one of the most tax-efficient vehicles for generational wealth.

Depreciation also improves risk management. Lower tax bills mean higher liquidity, which helps investors weather vacancies, repairs, and economic downturns. It does not turn a bad deal into a good one, but it significantly improves the margin of safety on good deals.

In short, depreciation is not just a tax benefit — it is a strategic advantage. Used correctly, it allows investors to compound faster, reinvest more capital, and build long-term wealth with far greater efficiency than traditional investing alone.

This newsletter is for informational and educational purposes only and does not constitute investment, tax, or legal advice. All investments involve risk, including the possible loss of principal. Past performance is not indicative of future results. You should consult with qualified financial, tax, and legal professionals before making investment decisions. Chris, Trip, and Frankie may own positions discussed.