Welcome back to the Smart Wealth Newsletter.

This is where we document our family’s real-world investing journey — not theory, not hindsight, but disciplined capital allocation in real time.

I’m Chris McLaughlin, investing alongside my two sons as we focus on long-term compounding through public equities and real estate.

Trip is currently attending the Freeman Business School at Tulane University, where finance, economics, and valuation are not just classroom subjects — they are tools he actively applies to his portfolio decisions. Every earnings report, Federal Reserve update, and macroeconomic shift becomes part of his real-world education.

Frankie is a senior at All Saints Academy, and he continues to prove that investing discipline has nothing to do with age. He was just named a National Merit Scholarship Finalist. He studies innovation cycles, tracks AI infrastructure growth, and builds conviction early — understanding that compounding begins long before adulthood.

As a family, we debate ideas, study trends, and build conviction in companies we believe will define the next decade.

Let’s begin with what happened in the financial markets for the week ending Friday, February 20, 2026.

The week ending February 20th was driven by policy headlines, tariff relief, selective sector rotation, and continued AI-driven market leadership.

At Friday’s close, the major indexes finished at:

Dow Jones Industrial Average: 49,625.97
S&P 500: 6,909.51
Nasdaq Composite: 22,886.07

For the week, the S&P 500 rose approximately 1.1%, the Nasdaq gained about 1.5%, and the Dow advanced roughly 0.3%.

This divergence tells a story: growth and innovation continued leading, while more traditional sectors showed moderate strength.

The biggest catalyst of the week was the Supreme Court decision striking down key Trump-era tariffs imposed under the International Emergency Economic Powers Act.

This ruling immediately impacted sectors sensitive to global supply chains.

For years, tariffs have functioned as a hidden tax on import-heavy industries — particularly apparel, retail, consumer electronics, and certain industrial goods. The ruling signaled potential margin relief.

Markets responded quickly.

Retail and apparel stocks were among the strongest performers following the decision. Companies exposed to overseas manufacturing and import-heavy inventories saw immediate upward repricing as investors anticipated improved gross margins and potential pricing flexibility.

Digital advertising platforms also moved higher. The reasoning is straightforward: if tariff pressures ease and business margins improve, companies are more willing to expand marketing budgets. Advertising platforms benefit quickly when corporate confidence rises.

However, policy uncertainty is not gone. Former President Trump has discussed a possible 10% global tariff framework. That means the trade story has shifted — not disappeared.

Markets treated the ruling as near-term relief, not permanent trade resolution.

Despite tariff headlines, interest rates remain the anchor variable for valuation.

Inflation has moderated significantly from its peak, but it remains above long-term Federal Reserve targets. Policymakers continue emphasizing patience.

Markets are pricing rate cuts later in 2026 — but not aggressively.

Technology stocks continue outperforming because earnings growth remains strong enough to offset rate sensitivity. AI infrastructure spending, enterprise cloud migration, and semiconductor demand continue to drive capital expenditures.

The Nasdaq’s relative strength reflects this structural growth.

Bitcoin closed near $67,980 on Friday.

What stands out is stability. Bitcoin did not surge or collapse. Institutional ETF flows and broader liquidity expectations continue anchoring volatility.

Bitcoin is increasingly behaving like a macro-sensitive asset — responding to liquidity expectations rather than pure speculation.

Steady crypto prices suggest risk appetite remains intact.

Retail data indicates the American consumer remains active. Employment remains stable. Wage growth persists.

This is not recession behavior.

It is recalibration behavior.

Markets are rewarding margin expansion, structural growth, and clarity. They are punishing uncertainty and cost compression.

The Supreme Court ruling provided clarity — and capital flowed accordingly.

This remains a selective bull market.

Innovation wins. Earnings durability wins. Structural growth wins.

This week’s spotlight is Aurora Innovation (AUR).

Frankie owns Aurora and is currently up 22.31% on his position.

Aurora is building autonomous driving systems, primarily focused on long-haul trucking. Instead of tackling urban robo-taxis first — arguably the most complex autonomy challenge — Aurora is targeting hub-to-hub freight corridors.

That strategic choice matters.

The trucking industry faces structural issues:

Driver shortages.
Rising labor costs.
Fatigue limitations.
Insurance expenses.
Fuel inefficiencies.

Autonomous freight addresses all of them.

Autonomous trucks can operate longer hours, reduce human error, and optimize routing. That translates into lower cost per mile — a massive economic incentive.

Aurora’s Aurora Driver platform integrates hardware, sensors, software, and AI models built from accumulated driving data. The more miles logged, the stronger the data moat becomes.

Critics argue autonomy timelines have been delayed repeatedly across the industry. That’s fair.

But freight autonomy is narrower in scope and economically urgent. Commercialization does not require full urban complexity.

Aurora has strategic partnerships with logistics operators and OEM manufacturers. Integration matters. Autonomy cannot scale without ecosystem coordination.

From a financial standpoint, Aurora remains volatile. But volatility does not equal long-term risk if commercialization milestones are achieved.

The total addressable market for autonomous freight spans tens of billions of dollars.

For Frankie, this is not a short-term trade. It is a conviction investment in logistics transformation.

He believes autonomy is economically inevitable — and Aurora is positioned to be a first mover in scalable freight deployment.

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat.

It remains one of the most powerful wealth-building strategies available to disciplined real estate investors.

The process begins with buying below intrinsic value. Distressed sellers, cosmetic rehabs, estate situations — profit is made at purchase.

Equity is created immediately when the acquisition is disciplined.

Rehabbing is strategic value creation.

Kitchens. Bathrooms. Flooring. Curb appeal.

The goal is not luxury — it is forced appreciation.

Renovations must increase appraised value beyond capital invested.

Stabilization creates predictable income.

Strong tenant screening and professional management ensure consistent cash flow.

Cash flow protects downside risk.

Once stabilized and reappraised at a higher value, investors refinance and extract equity tax-free.

That recycled capital funds the next purchase.

Compounding begins.

Each property becomes fuel for the next acquisition.

Leverage, appreciation, tax advantages, and cash flow combine into a scalable wealth engine.

In today’s rate environment, refinancing opportunities may improve as mortgage rates stabilize.

Discipline is essential:

Conservative underwriting.
Realistic vacancy assumptions.
Renovation cost buffers.
Appraisal awareness.

BRRRR is not passive.

It requires oversight and patience.

But when executed properly, it becomes one of the most scalable long-term wealth strategies available.

Alphabet Inc. Class C (GOOG) closed at $314.90 and Chris is up 83.46%. The average analyst rating is Strong Buy. Chris’s rating: Buy.
Chris owns Alphabet because it dominates global digital advertising while aggressively expanding into artificial intelligence infrastructure and Google Cloud. With AI monetization accelerating and digital ad demand strengthening after tariff relief, Alphabet remains a long-term compounder.

Amazon.com Inc. (AMZN) closed at $210.11 and Chris is up 1.01%. The average analyst rating is Strong Buy. Chris’s rating: Buy.
Chris owns Amazon for its logistics dominance and AWS cloud leadership. As enterprise AI workloads expand and consumer spending remains stable, Amazon’s operating leverage continues improving.

Apple Inc. (AAPL) closed at $264.58 and Chris is up 76.47%. The average analyst rating is Buy. Chris’s rating: Hold.
Chris owns Apple for its ecosystem lock-in and services expansion. While hardware cycles mature, Apple’s recurring revenue and brand loyalty create durable long-term cash flow.

Costco Wholesale (COST) closed at $985.27 and Chris is up 109.17%. The average analyst rating is Buy. Chris’s rating: Buy.
Chris owns Costco because of its membership-based recurring revenue model and pricing discipline. In both inflationary and disinflationary environments, Costco consistently gains share.

Deere & Company (DE) closed at $662.49 and Chris is up 88.97%. The average analyst rating is Buy. Chris’s rating: Buy.
Chris owns Deere as a precision agriculture and automation leader. Global food demand and smart farming technology create structural tailwinds.

GE Aerospace (GE) closed at $343.22 and Chris is up 248.09%. The average analyst rating is Buy. Chris’s rating: Strong Buy.
Chris owns GE Aerospace for its commercial aviation engine dominance and long-term service revenue. Global travel demand and defense spending provide multi-year earnings visibility.

GE HealthCare (GEHC) closed at $84.23 and Chris is up 2.31%. The average analyst rating is Buy. Chris’s rating: Hold.
Chris owns GE HealthCare for its imaging and diagnostics leadership. Healthcare infrastructure spending remains steady and recession-resistant.

GE Vernova (GEV) closed at $830.34 and Chris is up 716.09%. The average analyst rating is Buy. Chris’s rating: Strong Buy.
Chris owns GE Vernova as a transformational energy transition company. Grid modernization, electrification, and global power demand create enormous long-term opportunity.

Kroger (KR) closed at $66.36 and Chris is up 35.48%. The average analyst rating is Hold. Chris’s rating: Hold.
Chris owns Kroger as a defensive grocery staple. Food demand remains resilient regardless of economic cycles.

Meta Platforms (META) closed at $655.66 and Chris is up 13.10%. The average analyst rating is Strong Buy. Chris’s rating: Buy.
Chris owns Meta for its digital advertising rebound and AI-enhanced monetization. Operating margins continue expanding as efficiency improves.

Microsoft (MSFT) closed at $397.23 and Chris is up 801.32%. The average analyst rating is Strong Buy. Chris’s rating: Strong Buy.
Chris owns Microsoft because it sits at the center of enterprise AI and cloud computing. Azure growth and AI integration across products make it foundational infrastructure.

Procter & Gamble (PG) closed at $160.78 and Chris is up 97.35%. The average analyst rating is Hold. Chris’s rating: Hold.
Chris owns Procter & Gamble for dividend stability and global brand dominance. Its consistent cash flow balances higher-growth holdings.

Amazon (AMZN) closed at $210.11 and Chris is up 84.94%. Analyst rating: Strong Buy. Chris rating: Buy.
He holds Amazon in the trust for long-term compounding driven by AWS and logistics scale. AI infrastructure spending strengthens its profit profile.

American Express (AXP) closed at $346.18 and Chris is up 107.69%. Analyst rating: Buy. Chris rating: Buy.
AXP benefits from premium customer spending and travel recovery. Strong credit quality and pricing power support earnings growth.

Kinder Morgan (KMI) closed at $32.73 and Chris is up 119.46%. Analyst rating: Hold. Chris rating: Hold for Income.
Pipeline infrastructure provides toll-road style revenue. Energy transport remains essential regardless of commodity swings.

Exxon Mobil (XOM) closed at $147.28 and Chris is up 75.52%. Analyst rating: Buy. Chris rating: Buy.
Exxon generates strong free cash flow through disciplined capital allocation. Stable global energy demand supports long-term returns.

Tesla (TSLA) closed at $411.82 and Chris is up 29.50%. Analyst rating: Hold. Chris rating: Buy.
Tesla represents electric vehicles, robotics, autonomy, and AI integration. Inside a Roth structure, long-term innovation gains grow tax-free.

Palantir (PLTR) closed at $135.24 and Chris is down 11.23%. Analyst rating: Hold. Chris rating: Buy.
Palantir’s enterprise AI platform continues expanding across government and commercial sectors. Chris views near-term volatility as opportunity within long-term adoption.

Alibaba (BABA) closed at $154.45 and Trip is up 99.29%. Analyst rating: Buy. Trip rating: Buy.
Trip owns Alibaba for China consumer recovery and cloud growth potential. Improving regulatory clarity supports sentiment recovery.

MicroStrategy (MSTR) closed at $131.05 and Trip is down 24.51%. Analyst rating: Hold. Trip rating: Speculative Buy.
He views MicroStrategy as leveraged Bitcoin exposure. Volatility is high, but digital asset adoption remains compelling.

New Gold (NGD) closed at $12.22 and Trip is down 4.83%. Analyst rating: Hold. Trip rating: Hold.
Gold exposure hedges macro uncertainty. Inflation and geopolitical risk support long-term demand.

NextEra Energy (NEE) closed at $92.18 and Trip is up 5.08%. Analyst rating: Buy. Trip rating: Buy.
Renewable energy and regulated utilities provide steady compounding. Clean energy infrastructure spending continues growing.

GE Vernova (GEV) closed at $830.34 and Trip is up 728.32%. Analyst rating: Buy. Trip rating: Strong Buy.
Electrification and grid modernization create enormous runway. Trip believes energy transition spending remains early stage.

Rocket Lab (RKLB) closed at $70.86 and Trip is down 18.28%. Analyst rating: Buy. Trip rating: Buy.
Commercial space launches and satellite infrastructure provide disruptive growth potential. Space commercialization is still early innings.

L3Harris (LHX) closed at $356.14 and Trip is down 0.30%. Analyst rating: Buy. Trip rating: Buy.
Defense spending trends support contract visibility. Global security tensions increase demand.

Apple (AAPL) closed at $264.58 and Trip is up 127.95%. Analyst rating: Buy. Trip rating: Hold.
Apple’s ecosystem stability anchors his growth portfolio. Services expansion supports margin durability.

AST SpaceMobile (ASTS) closed at $80.20 and Trip is down 29.35%. Analyst rating: Buy. Trip rating: Speculative Buy.
Satellite-to-cell connectivity could transform global telecom access. Execution risk remains high, but upside is asymmetric.

NVIDIA (NVDA) closed at $189.82 and Trip is up 62.06%. Analyst rating: Strong Buy. Trip rating: Strong Buy.
AI compute demand remains explosive. NVIDIA continues dominating high-performance chips.

IREN Ltd (IREN) closed at $39.98 and Trip is down 33.37%. Analyst rating: Hold. Trip rating: Speculative Buy.
Bitcoin mining and AI infrastructure exposure create dual upside potential. Volatility remains elevated.

Adobe (ADBE) closed at $258.61 and Trip is down 3.28%. Analyst rating: Buy. Trip rating: Buy.
Subscription revenue and creative software dominance provide recurring cash flow. AI integration strengthens product suite.

Chevron (CVX) closed at $183.93 and Trip is up 11.08%. Analyst rating: Buy. Trip rating: Buy.
Energy discipline and shareholder returns drive stability. Geopolitical shifts may tighten supply dynamics.

BitMine (BMNR) closed at $20.13 and Trip is down 22.58%. Analyst rating: Speculative. Trip rating: Speculative Hold.
Exposure to digital asset mining infrastructure offers high risk/high reward potential. Position size reflects volatility awareness.

Navitas (NVTS) closed at $7.88 and Frankie is up 5.91%. Analyst rating: Buy. Frankie rating: Buy.
GaN semiconductor technology improves efficiency in EVs and data centers. Power infrastructure demand continues rising.

GE Vernova (GEV) closed at $830.34 and Frankie is up 728.32%. Analyst rating: Buy. Frankie rating: Strong Buy.
Grid modernization and renewable integration support sustained growth. Energy transition remains structural.

Nebius (NBIS) closed at $97.92 and Frankie is up 15.51%. Analyst rating: Speculative Buy. Frankie rating: Buy.
AI cloud infrastructure in emerging markets offers expansion potential. Compute demand remains global.

Microsoft (MSFT) closed at $397.23 and Frankie is up 255.24%. Analyst rating: Strong Buy. Frankie rating: Strong Buy.
Enterprise AI integration across Office and Azure strengthens recurring revenue. Microsoft remains foundational infrastructure.

Tesla (TSLA) closed at $411.82 and Frankie is up 38.48%. Analyst rating: Hold. Frankie rating: Buy.
EV leadership and autonomy development drive long-term upside. Robotics and AI expansion broaden TAM.

Palantir (PLTR) closed at $135.24 and Frankie is down 6.00%. Analyst rating: Hold. Frankie rating: Buy.
Enterprise AI deployment accelerates contract wins. Government relationships provide stable revenue base.

Aurora Innovation (AUR) closed at $4.77 and Frankie is up 22.31%. Analyst rating: Buy. Frankie rating: Strong Buy.
Autonomous trucking addresses driver shortages and logistics inefficiencies. Commercial deployment milestones remain key catalysts.

Meta (META) closed at $655.66 and Frankie is up 13.46%. Analyst rating: Strong Buy. Frankie rating: Buy.
Digital ad strength and AI engagement tools expand margins. Advertising rebound supports earnings growth.

This newsletter is for educational purposes only and does not constitute investment advice. Investing involves risk, including loss of principal. Past performance does not guarantee future results. Always consult a qualified financial professional before making investment decisions.