Welcome back to another edition of the Smart Wealth Newsletter!

As always, we're grateful that you've chosen to spend part of your weekend with our family. Our goal remains simple: provide thoughtful insight into the financial markets, highlight quality investment opportunities, and share the real estate principles that have helped our family build long-term wealth.

Our family continues to learn and invest together. Trip McLaughlin is currently studying at the Freeman School of Business at Tulane University, where he's expanding his knowledge of finance, economics, and entrepreneurship while actively managing his own investment portfolio. Frankie McLaughlin, a National Merit Scholarship Finalist, will begin classes this fall at Georgetown University's McDonough School of Business, where he'll continue developing the investing discipline that has already produced outstanding results in his personal portfolio.

We firmly believe that successful investing is a lifelong journey built on education, patience, and disciplined decision-making. Every week we analyze what happened in the markets, discuss opportunities we see developing, and explain the reasoning behind many of our investment decisions. Whether you're a beginning investor or have decades of experience, we hope these insights help you make better long-term financial decisions.

Let's dive into another exciting week on Wall Street.

The holiday-shortened trading week ending Thursday, July 2, 2026, demonstrated once again why investors should never become overly emotional during periods of market volatility. Although technology shares experienced another round of profit-taking, the broader market remained remarkably resilient as investors rotated into industrials, financials, healthcare, and value-oriented companies. The result was another impressive week for diversified investors and another reminder that bull markets rarely move in a straight line.

By Thursday's close, the Dow Jones Industrial Average surged 594.83 points to finish at a new record high of 52,900.07, gaining 1.14% for the day. The S&P 500 finished virtually unchanged at 7,483.24, while the Nasdaq Composite declined 207.36 points to close at 25,832.67 as semiconductor and AI-related stocks experienced another round of profit taking. Despite the mixed session, all three major indexes posted strong weekly gains, with the Dow advancing approximately 2.0%, the S&P 500 gaining 1.8%, and the Nasdaq adding 2.1% for the week.

One of the week's biggest catalysts was the June employment report. The labor market showed meaningful signs of slowing, with payroll growth coming in well below economists' expectations. While a weak jobs report might normally concern investors, Wall Street interpreted the data differently. Slower hiring reduces the likelihood that inflation will reaccelerate, giving the Federal Reserve additional flexibility when determining future monetary policy.

For months, investors have been debating whether the Federal Reserve would need to resume raising interest rates. This week's economic data suggested that may become increasingly unlikely. Inflation has moderated significantly from its peak, wage growth continues to normalize, and employment is cooling without showing signs of a severe recession. That combination represents nearly the ideal "soft landing" scenario the Federal Reserve has been attempting to engineer.

Interest rates remain one of the most important variables affecting nearly every asset class. Lower borrowing costs generally support higher stock valuations, increase affordability in the housing market, reduce financing expenses for businesses, and improve consumer confidence. Although Federal Reserve officials continue emphasizing that they remain data dependent, investors increasingly believe future policy changes may involve eventual rate cuts rather than additional increases if inflation continues trending lower.

Another encouraging development has been the continued stabilization of energy prices. Just weeks ago, investors worried that escalating tensions in the Middle East could produce another significant oil shock similar to previous geopolitical crises. Higher oil prices would almost certainly push inflation higher, forcing central banks to maintain tighter monetary policy longer than investors would prefer.

The situation involving Iran remains one of the largest geopolitical risks facing global financial markets. While uncertainty certainly remains, recent diplomatic efforts have reduced fears that the conflict could expand into a much broader regional confrontation. Investors continue hoping that negotiations ultimately produce a lasting peace, because stability throughout the Middle East benefits not only energy markets but also the broader global economy.

Should a durable peace agreement emerge, oil prices would likely remain contained, inflationary pressures could continue easing, and businesses would benefit from greater certainty regarding supply chains and transportation costs. Conversely, any renewed escalation would likely introduce fresh volatility into commodity markets. For now, investors appear cautiously optimistic while remaining aware that geopolitical headlines can change rapidly.

Sector rotation was another major theme this week. Rather than abandoning equities altogether, institutional investors simply shifted capital away from some of this year's biggest winners and toward industries that have lagged behind. This is actually a healthy characteristic of a sustainable bull market. Instead of depending upon only a handful of technology companies, leadership is broadening across multiple sectors of the economy.

Financial stocks performed well as investors became more optimistic about economic stability. Industrial companies also attracted buyers, supported by continued infrastructure spending and improving manufacturing expectations. Healthcare shares demonstrated defensive strength while consumer staples continued providing stability during periods of technology volatility.

Technology remains the market's long-term growth engine, but even the strongest companies experience periods of consolidation. After extraordinary gains during the first half of the year, many semiconductor companies have naturally encountered profit-taking. Long-term investors should remember that temporary pullbacks are normal components of every bull market.

One company receiving considerable attention this week was Apple. The stock has experienced a meaningful pullback over recent weeks as investors questioned the pace of artificial intelligence innovation, smartphone upgrade cycles, and slowing growth in certain international markets. Apple has also faced increasing competitive pressure as rivals accelerate their AI initiatives.

Despite the recent selloff, we continue viewing Apple as one of the world's premier businesses. The company maintains one of the strongest balance sheets in corporate America, generates enormous free cash flow, possesses an unmatched ecosystem of loyal customers, and continues returning substantial capital to shareholders through dividends and share repurchases. Short-term weakness should not distract investors from Apple's long history of creating shareholder value over decades rather than quarters.

History repeatedly demonstrates that outstanding companies occasionally become temporarily unpopular. Those moments often create opportunities for patient long-term investors willing to look beyond near-term headlines. Apple's innovation pipeline, services business, wearables segment, and expanding artificial intelligence capabilities continue providing multiple avenues for future growth.

Another encouraging development has been the resilience of corporate America despite persistent uncertainty. Earnings expectations for the second half of 2026 remain constructive, with many companies successfully controlling expenses while continuing to invest in artificial intelligence, automation, cloud computing, cybersecurity, and advanced manufacturing. Businesses that effectively deploy these technologies should continue improving productivity and profitability for years to come.

Looking ahead, investors will continue monitoring inflation reports, Federal Reserve commentary, corporate earnings, geopolitical developments, and economic growth. While short-term volatility is inevitable, the broader backdrop remains constructive. Consumer spending has held up reasonably well, unemployment remains historically low, corporate balance sheets generally remain healthy, and innovation across artificial intelligence, robotics, biotechnology, and energy continues creating new investment opportunities.

One lesson continues repeating itself throughout every market cycle: successful investors rarely attempt to predict every short-term movement. Instead, they focus on owning outstanding businesses, maintaining diversification, adding capital consistently, and allowing compounding to work over many years. That philosophy has served our family well, and we believe it remains the best strategy for building lasting wealth regardless of weekly headlines.

Although volatility will certainly continue, the long-term outlook remains encouraging. Bull markets often climb a wall of worry, and today's concerns surrounding interest rates, geopolitics, and technology valuations may eventually become little more than footnotes in a much longer story of economic growth and innovation. Investors who remain disciplined, diversified, and patient continue placing themselves in the strongest position to benefit from America's remarkable ability to innovate, adapt, and create wealth over time.

When most investors think about artificial intelligence, companies like NVIDIA, Microsoft, or Palantir often dominate the conversation. Yet one of the strongest performers in enterprise technology this year has been a company that many investors mistakenly view as an "old technology" business: IBM (NYSE: IBM).

At first glance, IBM may not seem like the exciting growth stock it once was during the early days of computing. However, today's IBM is dramatically different from the company that many investors remember. Under CEO Arvind Krishna, IBM has reinvented itself around hybrid cloud computing, enterprise artificial intelligence, consulting, cybersecurity, and mission-critical software. Rather than competing directly with consumer AI products, IBM has focused on helping governments, banks, healthcare providers, manufacturers, and Fortune 500 companies integrate AI into their daily operations.

That strategy is proving to be extremely successful.

One reason we're highlighting IBM this week is because Trip recently added IBM to his Schwab portfolio and is already up more than 15% on the investment. While no one should expect every new investment to appreciate that quickly, the gain illustrates an important lesson: sometimes outstanding companies hide in plain sight because investors are chasing the latest headline stock.

IBM's transformation has been years in the making. After spinning off its slower-growing infrastructure services business, management concentrated resources on higher-margin software, consulting, and artificial intelligence. The acquisition of Red Hat has become one of the most important technology acquisitions of the past decade, giving IBM leadership in hybrid cloud environments that allow businesses to operate seamlessly across public clouds, private clouds, and on-premise data centers.

Hybrid cloud has become increasingly important because most large corporations don't want all of their sensitive information stored in a single public cloud. Financial institutions, healthcare companies, defense contractors, and governments often require customized solutions that balance security, compliance, flexibility, and performance. IBM has become one of the industry's leading providers of exactly those services.

Artificial intelligence has added another major growth engine.

IBM's Watson platform was one of the earliest AI initiatives in corporate America. While the original Watson project generated mixed reviews, IBM used those lessons to build a far more practical enterprise AI platform. Today, its watsonx suite helps businesses create, train, and deploy generative AI models tailored to their own data while maintaining security and regulatory compliance.

This is a critical distinction. Many businesses are reluctant to place proprietary information into public AI systems. IBM offers clients the ability to develop AI capabilities within secure environments, making it especially attractive to highly regulated industries.

That focus has helped IBM win contracts with banks, insurance companies, healthcare providers, pharmaceutical firms, manufacturers, retailers, and government agencies around the world.

IBM's consulting division further strengthens the investment thesis. Once a company decides to implement artificial intelligence, cloud computing, or digital transformation initiatives, it often needs experienced professionals to guide the process. IBM Consulting works alongside clients to design systems, implement software, train employees, and optimize operations.

This creates a powerful ecosystem. IBM can sell software, cloud infrastructure, AI tools, cybersecurity services, and consulting expertise as part of one integrated solution, resulting in recurring revenue and long-term customer relationships.

Another reason investors continue rewarding IBM is the company's financial discipline.

Management has consistently generated strong free cash flow while reducing debt and returning capital to shareholders. IBM also pays one of the most attractive dividends in the technology sector, providing investors with income while they wait for the business transformation to continue unfolding.

That combination of dividend income and steady earnings growth has made IBM increasingly appealing to institutional investors seeking technology exposure without the extreme volatility associated with many younger AI companies.

IBM's balance sheet has improved substantially over the past several years. Strong cash generation gives management flexibility to invest in research and development, pursue strategic acquisitions, reduce debt, and continue rewarding shareholders.

Cybersecurity represents another important growth opportunity.

As cyberattacks become more sophisticated, organizations are investing heavily in protecting sensitive information. IBM offers a broad portfolio of cybersecurity solutions that integrate with its cloud and AI offerings. This allows customers to simplify vendor relationships while improving security across their organizations.

Quantum computing may ultimately become IBM's most exciting long-term opportunity.

Although commercial adoption remains years away, IBM is widely recognized as one of the world's leaders in quantum research. Quantum computers have the potential to solve extraordinarily complex problems that traditional computers cannot efficiently process. Applications could eventually include pharmaceutical development, financial modeling, logistics optimization, materials science, energy research, and cryptography.

No one knows precisely when quantum computing will become mainstream, but IBM has positioned itself to benefit if adoption accelerates over the next decade.

From a valuation standpoint, IBM also compares favorably with many technology peers. While several AI-related companies trade at extremely high earnings multiples, IBM offers investors exposure to artificial intelligence, cloud computing, consulting, cybersecurity, and quantum computing at a more reasonable valuation. That doesn't guarantee superior returns, but it does provide a greater margin of safety if market sentiment shifts.

Of course, every investment carries risks.

IBM operates in intensely competitive markets where companies like Microsoft, Amazon, Alphabet, Oracle, Salesforce, and others invest billions of dollars annually. Technology changes rapidly, requiring IBM to continually innovate to maintain its competitive position. Consulting revenue can also fluctuate if corporations reduce technology spending during economic slowdowns.

Even so, IBM possesses several durable competitive advantages. Its relationships with enterprise customers often span decades. Switching mission-critical technology providers can be expensive and disruptive, giving IBM unusually high customer retention. Its global consulting workforce, software portfolio, cloud infrastructure, and research capabilities create barriers that are difficult for competitors to replicate.

For long-term investors, IBM represents something increasingly rare: a technology company combining innovation with financial stability.

Rather than depending on a single product, IBM generates revenue from multiple complementary businesses. That diversification reduces risk while allowing the company to participate in several of technology's most important secular growth trends.

Trip's recent purchase reflects exactly the type of disciplined investing we encourage. Instead of chasing whatever stock is making headlines this week, he focused on a high-quality company with improving fundamentals, expanding AI opportunities, experienced leadership, and attractive long-term prospects. The fact that the position has already appreciated more than 15% is encouraging, but our enthusiasm isn't based on the recent gain alone.

We're excited because IBM appears well-positioned for continued growth over the next five to ten years. Enterprise AI adoption is still in its early stages, hybrid cloud demand continues expanding, cybersecurity spending remains a priority, and quantum computing could eventually create entirely new markets.

Investing is rarely about finding the "next hot stock." More often, it's about identifying exceptional businesses before the broader market fully appreciates the transformation taking place. IBM may never generate the excitement of some speculative technology names, but patient investors have repeatedly been rewarded by owning financially strong companies that continue adapting to changing markets.

Our view remains straightforward: IBM has successfully reinvented itself for the AI era. With multiple long-term growth drivers, disciplined management, improving financial performance, and a growing role in enterprise artificial intelligence, we believe IBM deserves serious consideration as a core long-term technology holding. For Trip, this investment is already off to an excellent start, and we believe the company's best days may still lie ahead.

One of the questions I'm asked most often by new real estate investors is, "How do you know whether a rental property is a good investment?" While there are dozens of financial metrics that professionals use—including capitalization rates, cash-on-cash returns, internal rates of return, and debt-service coverage ratios—I still believe one of the simplest rules is also one of the most valuable: the 1% Rule.

The 1% Rule states that a rental property should generate at least 1% of its purchase price in gross monthly rent. For example, if you purchase a home for $300,000, you should aim for monthly rent of approximately $3,000. While this isn't a hard-and-fast rule, it's an excellent screening tool that can quickly eliminate properties that are unlikely to generate sufficient cash flow.

I've relied on this principle for decades, and it proved especially valuable during one of the most difficult periods in modern real estate history—the housing collapse of 2008 and 2009.

When home prices were falling across the country, many investors found themselves in serious financial trouble. They had purchased properties based on the assumption that appreciation alone would make them wealthy. Unfortunately, when prices declined sharply, many were left with mortgages that exceeded the value of their properties. Since their rental income didn't fully cover their monthly expenses, they were forced to inject cash into their investments every month—or worse, walk away from them entirely.

My experience was very different.

Even though property values temporarily declined, my rental properties continued generating enough monthly income to cover the mortgage payments, property taxes, insurance, maintenance, and other operating expenses. The properties were purchased with cash flow in mind—not speculation. As long as the tenants continued paying rent, the investments continued paying for themselves.

That steady cash flow allowed me to sleep at night while many investors were panicking.

One of the biggest mistakes new investors make is focusing almost exclusively on appreciation. While appreciation is wonderful when it occurs, it should be viewed as a bonus—not the primary reason for buying investment property. No one can consistently predict what the market will do over the next year or two. Interest rates change, local economies fluctuate, and unexpected events can temporarily impact property values.

Cash flow, however, provides stability.

When your rental income comfortably exceeds your expenses, you gain flexibility. You aren't forced to sell during a downturn. You can weather temporary vacancies, make necessary repairs, and continue holding quality assets while the market eventually recovers.

History has shown that real estate markets move in cycles. Prices rise, level off, decline, and eventually recover. Investors who own properties with strong cash flow generally have the luxury of waiting for that recovery. Investors who depend solely on appreciation often don't.

The 1% Rule also encourages discipline during the buying process.

It's easy to fall in love with a beautiful property or convince yourself that future appreciation will justify paying too much. The 1% Rule forces you to step back and evaluate the numbers objectively. If a property's rental income falls well short of the benchmark, you should ask yourself whether the investment truly makes financial sense or whether you're allowing emotion to drive the decision.

Of course, the 1% Rule isn't perfect.

In some high-cost markets, finding properties that satisfy the rule can be extremely difficult. Cities with exceptionally high appreciation potential may still produce excellent long-term investments despite generating less than 1% in monthly rent. On the other hand, some lower-priced markets may easily exceed the 1% threshold but have weaker long-term economic fundamentals.

That's why I consider the rule a starting point—not the final decision.

After identifying a property that meets the guideline, I still evaluate neighborhood quality, school districts, employment trends, population growth, property condition, taxes, insurance costs, expected maintenance, financing terms, and long-term appreciation potential. Real estate investing is always about balancing risk and reward.

Financing also plays a major role in determining whether a property will generate positive cash flow. A property purchased with a low fixed-rate mortgage often produces far better monthly returns than the exact same property financed at a significantly higher interest rate. That's why it's important to evaluate the complete financial picture rather than relying on any single metric.

Another lesson I learned during the housing downturn is the importance of maintaining adequate cash reserves.

Even the best rental properties occasionally experience vacancies, unexpected repairs, or periods of slower leasing activity. Roofs eventually need replacement. Air-conditioning systems fail. Appliances wear out. Responsible investors prepare for these inevitable expenses rather than hoping they never occur.

Having reserve funds allows you to handle those situations without financial stress and protects both your investment and your tenants.

One of the reasons I continue recommending real estate as a wealth-building vehicle is its ability to create multiple streams of return simultaneously. If you purchase wisely, a rental property can generate monthly cash flow, appreciate over time, provide valuable tax benefits through depreciation, gradually reduce debt as tenants pay down your mortgage, and offer opportunities to refinance or exchange into larger properties as your portfolio grows.

Few investments offer that combination.

The key is purchasing intelligently from the beginning.

Today's real estate market certainly looks different than it did in 2008. Mortgage rates remain higher than many buyers became accustomed to during the pandemic years, inventory varies considerably from market to market, and affordability has become more challenging. Yet the underlying principles haven't changed.

Successful investors continue buying properties based on numbers rather than emotions.

They analyze income carefully.

They budget conservatively.

They maintain cash reserves.

And they make sure their rental properties can stand on their own financially.

Looking back, one of the greatest lessons from the housing crisis wasn't that real estate is risky—it was that poorly structured investments are risky. Quality rental properties purchased with positive cash flow and conservative financing proved remarkably resilient, even during one of the worst housing downturns in American history.

The 1% Rule helped guide many of my purchasing decisions then, and it continues to influence my thinking today. It isn't the only metric I use, but it remains one of the simplest and most effective ways to avoid overpaying for investment property.

Real estate has been one of the most important contributors to my family's long-term financial success. The combination of consistent cash flow, appreciation, mortgage amortization, and tax advantages has created opportunities that simply wouldn't have existed had I focused solely on buying and hoping prices would rise.

If you're just beginning your real estate investing journey, remember this: cash flow is your foundation. Appreciation may build wealth, but positive cash flow helps you survive long enough to enjoy it. That simple lesson carried me through the challenges of 2008 and 2009, and I believe it remains just as relevant for investors building wealth today.

One of the principles that has guided my investment philosophy for decades is owning outstanding businesses and allowing time and compounding to do the heavy lifting. While the market will inevitably experience periods of volatility, I continue to believe that high-quality companies with durable competitive advantages, exceptional management teams, and strong balance sheets create wealth over the long run. Below is an overview of my current portfolios and why I continue to own each company.

Alphabet (GOOG) closed the week at $356.18 and is up 107.24% since purchase. Average Analyst Rating: Strong Buy. Chris's Rating: Strong Buy. Alphabet remains one of the world's dominant technology companies through Google Search, YouTube, Google Cloud, and its rapidly expanding artificial intelligence initiatives. I continue to own Alphabet because I believe AI, cloud computing, and digital advertising will remain major growth drivers for years to come. Alphabet is a global technology company focused on search, cloud computing, artificial intelligence, digital advertising, and autonomous driving technologies.

Amazon (AMZN) closed at $242.67 and is up 16.66% since purchase. Average Analyst Rating: Strong Buy. Chris's Rating: Strong Buy. Amazon continues to dominate e-commerce while AWS remains one of the world's premier cloud computing businesses. I believe Amazon's investments in artificial intelligence, robotics, logistics, and cloud infrastructure position the company for many more years of above-average growth. Amazon is the world's largest online retailer and a global leader in cloud computing and artificial intelligence services.

Apple (AAPL) closed at $308.63 and is up 105.67% since purchase. Average Analyst Rating: Buy. Chris's Rating: Strong Buy. Although Apple has recently experienced some selling pressure, I continue to believe its ecosystem, loyal customer base, and enormous cash flow make it one of the world's finest companies. Long-term investors have consistently been rewarded by remaining patient through periods of short-term volatility. Apple designs consumer electronics, software, digital services, and artificial intelligence products used by billions of customers worldwide.

Costco Wholesale (COST) closed at $951.67 and is up 101.02% since purchase. Average Analyst Rating: Buy. Chris's Rating: Strong Buy. Costco's membership model continues producing consistent earnings growth regardless of economic conditions. I believe its loyal customer base, disciplined management team, and recurring membership income make it one of the highest-quality retailers in America. Costco operates one of the world's largest warehouse club retail chains.

Deere & Company (DE) closed at $621.27 and is up 76.91% since purchase. Average Analyst Rating: Buy. Chris's Rating: Buy. Deere continues leading the precision agriculture revolution through automation, GPS technology, and smart farming equipment. Global food demand should continue supporting the company's long-term growth prospects. Deere manufactures agricultural, construction, and forestry equipment worldwide.

GE Aerospace (GE) closed at $377.52 and is up 281.70% since purchase. Average Analyst Rating: Strong Buy. Chris's Rating: Strong Buy. Commercial aviation demand remains extremely strong while defense spending continues increasing worldwide. I expect GE Aerospace to benefit from both trends for many years. GE Aerospace designs and manufactures commercial and military aircraft engines and aviation technologies.

GE Vernova (GEV) closed at $1,113.11 and is up an incredible 1,010.41% since purchase. Average Analyst Rating: Strong Buy. Chris's Rating: Strong Buy. GE Vernova has become one of my best-performing investments as utilities around the world continue investing in electric grid modernization and power generation to support the AI revolution. I remain very optimistic about its long-term future despite the tremendous appreciation already achieved. GE Vernova provides power generation equipment, renewable energy solutions, and electric grid technologies.

Kroger (KR) closed at $58.22 and is up 18.46% since purchase. Average Analyst Rating: Hold. Chris's Rating: Buy. Grocery retail remains a defensive industry that performs well across economic cycles. Kroger continues investing in automation, digital fulfillment, and private-label products to strengthen profitability. Kroger is one of the largest supermarket chains in the United States.

Marvell Technology (MRVL) closed at $245.29 and is currently down 10.54% since purchase. Average Analyst Rating: Strong Buy. Chris's Rating: Strong Buy. Short-term volatility hasn't changed my long-term conviction as Marvell remains well positioned in artificial intelligence networking, custom silicon, and cloud infrastructure. I view recent weakness as part of normal market fluctuations rather than a deterioration in the company's long-term outlook. Marvell develops advanced semiconductor solutions for cloud computing, networking, storage, and AI infrastructure.

Meta Platforms (META) closed at $582.90 and is up 0.55% since purchase. Average Analyst Rating: Strong Buy. Chris's Rating: Strong Buy. Meta continues generating enormous cash flow while aggressively investing in artificial intelligence across Facebook, Instagram, WhatsApp, and its advertising platform. AI should continue improving engagement and monetization over the coming years. Meta Platforms operates several of the world's largest social media and digital advertising platforms.

Micron Technology (MU) closed at $975.56 and is currently down 18.47% since purchase. Average Analyst Rating: Strong Buy. Chris's Rating: Buy. Semiconductor cycles can be volatile, but Micron remains an important supplier of memory chips used in AI servers and advanced computing. I believe long-term demand for high-performance memory will continue expanding. Micron manufactures memory and storage semiconductor products for computing and artificial intelligence applications.

Microsoft (MSFT) closed at $390.49 and is up an extraordinary 754.70% since purchase. Average Analyst Rating: Strong Buy. Chris's Rating: Strong Buy. Microsoft continues executing exceptionally well across Azure cloud computing, enterprise software, cybersecurity, and artificial intelligence. It remains one of my highest-conviction long-term investments. Microsoft develops software, cloud computing services, artificial intelligence platforms, and enterprise technology solutions.

Procter & Gamble (PG) closed at $151.41 and is up 84.79% since purchase. Average Analyst Rating: Buy. Chris's Rating: Buy. Procter & Gamble provides stability and dependable dividend income regardless of market conditions. Its portfolio of globally recognized consumer brands continues producing reliable long-term returns. Procter & Gamble is one of the world's largest consumer products companies.

Space Exploration Technologies Class A (SPCX) closed at $162.00. Chris's Rating: Strong Buy. Although this remains one of my newer positions, I continue believing SpaceX has the potential to become one of the most valuable companies in the world through Starlink, reusable rockets, satellite communications, and future Mars exploration initiatives. I expect the company to remain a long-term holding in my portfolio. SpaceX is a private aerospace company focused on launch services, satellite communications, and space exploration technologies.

Amazon (AMZN) closed at $242.67 and is up 113.60% since purchase. Average Analyst Rating: Strong Buy. Chris's Rating: Strong Buy. I continue holding Amazon because AWS, artificial intelligence, and logistics investments provide multiple long-term growth opportunities. Amazon remains one of the strongest technology companies in the world.

American Express (AXP) closed at $351.96 and is up 111.16% since purchase. Average Analyst Rating: Buy. Chris's Rating: Strong Buy. American Express continues benefiting from resilient consumer spending and affluent cardholders. I believe its premium brand and disciplined underwriting support long-term growth. American Express is a global payments and financial services company.

Kinder Morgan (KMI) closed at $32.06 and is up 114.97% since purchase. Average Analyst Rating: Buy. Chris's Rating: Buy. Kinder Morgan provides dependable cash flow through its extensive energy infrastructure network. Natural gas demand should remain an important long-term tailwind. Kinder Morgan owns and operates one of North America's largest energy pipeline systems.

Verizon (VZ) closed at $42.56 and is currently down 15.63% since purchase. Average Analyst Rating: Hold. Chris's Rating: Hold. While wireless competition remains intense, Verizon continues generating dependable cash flow and an attractive dividend. It remains a conservative income-oriented investment. Verizon is one of America's largest wireless and telecommunications providers.

Exxon Mobil (XOM) closed at $137.09 and is up 63.38% since purchase. Average Analyst Rating: Buy. Chris's Rating: Buy. Exxon continues producing strong cash flow while maintaining disciplined capital allocation. I expect global energy demand to remain healthy over the long term. Exxon Mobil is one of the world's largest integrated energy companies.

Tesla (TSLA) closed the week at $393.45 and is up 23.72% since purchase. Average Analyst Rating: Buy. Chris's Rating: Strong Buy. Although Tesla has experienced significant volatility this year, my long-term conviction remains unchanged. I continue to believe Tesla will remain a global leader in electric vehicles, autonomous driving, robotics, artificial intelligence, and energy storage, making it one of the most innovative companies in the world. Tesla designs electric vehicles, battery storage systems, autonomous driving software, and artificial intelligence technologies.

Apple (AAPL) closed at $308.63 and is up 176.44% since purchase. Average Analyst Rating: Buy. Chris's Rating: Strong Buy. Apple's recent pullback hasn't changed my long-term outlook. The company's unmatched ecosystem, enormous free cash flow, and growing artificial intelligence initiatives continue making it one of the premier long-term investments in technology. Apple designs consumer electronics, software, digital services, and artificial intelligence products for customers around the world.

NVIDIA (NVDA) closed at $194.83 and is up 97.33% since purchase. Average Analyst Rating: Strong Buy. Chris's Rating: Strong Buy. NVIDIA remains at the center of the artificial intelligence revolution, with its GPUs powering data centers, cloud computing, and AI applications across nearly every industry. Despite its tremendous appreciation, I continue to believe the company has a long runway for future growth as AI adoption accelerates globally. NVIDIA develops advanced graphics processors, AI accelerators, networking hardware, and software platforms used in artificial intelligence and high-performance computing.

Space Exploration Technologies Class A (SPCX) closed at $162.00 and is up 20.00% since purchase. Average Analyst Rating: Buy. Chris's Rating: Strong Buy. SpaceX continues expanding Starlink while maintaining its leadership in reusable rocket technology and commercial space launches. I believe the company is uniquely positioned to benefit from the rapidly growing commercial space economy over the next decade. SpaceX is a private aerospace company focused on launch services, satellite communications, and space exploration technologies.

As in previous newsletters, I'm highlighting the two positions that I believe have the greatest long-term growth potential within my SIMPLE IRA.

Palantir Technologies (PLTR) closed at $129.30 and is currently down 10.19% since purchase. Average Analyst Rating: Buy. Chris's Rating: Strong Buy. While the stock has been volatile following its remarkable run over the past year, my long-term outlook has not changed. Palantir continues winning commercial and government contracts while establishing itself as one of the leading enterprise artificial intelligence software companies in the world. Palantir develops artificial intelligence software platforms used by commercial businesses, government agencies, and defense organizations.

Lam Research (LRCX) closed at $351.41 and is up 36.47% since purchase. Average Analyst Rating: Strong Buy. Chris's Rating: Strong Buy. Lam Research remains one of the world's premier semiconductor equipment manufacturers, supplying the tools needed to produce the advanced chips powering artificial intelligence, cloud computing, and next-generation electronics. As semiconductor manufacturers continue expanding production capacity, I believe Lam Research is well positioned for years of sustained growth. Lam Research designs and manufactures semiconductor fabrication equipment used by leading chip producers worldwide.

Trip continues building his portfolio around companies that he believes will benefit from long-term trends in artificial intelligence, electrification, energy infrastructure, advanced manufacturing, and space exploration. While short-term volatility is inevitable, he remains committed to owning high-quality companies with significant long-term growth potential.

GE Vernova (GEV) closed the week at $1,113.11 and is up an incredible 1,010.41% since purchase. Average Analyst Rating: Strong Buy. Trip's Rating: Strong Buy. GE Vernova continues to benefit from worldwide investment in electric grid modernization, power generation, and infrastructure needed to support the rapid expansion of artificial intelligence. Even after tremendous gains, Trip believes the company remains one of the strongest long-term industrial growth stories. GE Vernova develops power generation equipment, renewable energy technologies, and electric grid solutions.

Costco Wholesale (COST) closed at $951.67 and is up 106.47% since purchase. Average Analyst Rating: Buy. Trip's Rating: Strong Buy. Costco's membership-based business model continues producing dependable earnings and exceptional customer loyalty. Trip views Costco as one of the highest-quality defensive growth companies in the market. Costco operates one of the world's largest membership warehouse retail chains.

FuelCell Energy (FCEL) closed at $28.11 and is currently down 20.82% since purchase. Average Analyst Rating: Hold. Trip's Rating: Hold. Although FuelCell Energy remains a speculative investment, Trip believes hydrogen and clean energy technologies could become increasingly important over the coming decade. Because of the company's higher risk profile, he continues monitoring the position closely while maintaining a long-term perspective. FuelCell Energy develops hydrogen fuel cell and clean energy power generation systems.

Intel (INTC) closed at $120.35 and is currently down 5.86% since purchase. Average Analyst Rating: Buy. Trip's Rating: Buy. Intel continues investing aggressively in advanced chip manufacturing while expanding its foundry business. Trip believes successful execution could significantly improve Intel's competitive position over the next several years. Intel designs and manufactures semiconductors, processors, and advanced computing technologies.

IBM (IBM) closed at $289.52 and is already up 15.57% since purchase. Average Analyst Rating: Buy. Trip's Rating: Strong Buy. IBM was this week's featured Stock Spotlight because Trip believes the company's transformation into an enterprise artificial intelligence leader is still in its early stages. With leadership in hybrid cloud computing, AI software, consulting, cybersecurity, and quantum computing, he believes IBM offers an attractive combination of growth and stability. IBM develops enterprise software, artificial intelligence solutions, cloud computing platforms, consulting services, and quantum computing technologies.

Space Exploration Technologies Class A (SPCX) closed at $162.00 and is currently down 2.28% since purchase. Trip's Rating: Strong Buy. Although SpaceX remains a relatively new investment, Trip believes its leadership in reusable rockets, Starlink satellite communications, and future space exploration creates enormous long-term potential. He expects this to remain a core holding for many years. SpaceX is a private aerospace company focused on launch services, satellite communications, and space exploration technologies.

Frankie continues demonstrating impressive discipline by building a diversified portfolio of technology, artificial intelligence, industrial, and growth companies. As he prepares to begin his freshman year at Georgetown University's McDonough School of Business this fall, he continues focusing on long-term investing rather than short-term market fluctuations.

Navitas Semiconductor (NVTS) closed the week at $14.46 and is up 94.35% since purchase. Average Analyst Rating: Strong Buy. Frankie's Rating: Strong Buy. Although the stock has experienced meaningful volatility recently, Frankie continues believing Navitas is well positioned to benefit from increasing demand for gallium nitride power semiconductors used in artificial intelligence, electric vehicles, renewable energy, and fast-charging technologies. Navitas Semiconductor develops advanced power semiconductor solutions for next-generation electronics and energy applications.

GE Vernova (GEV) closed at $1,113.11 and is up 1,010.41% since purchase. Average Analyst Rating: Strong Buy. Frankie's Rating: Strong Buy. GE Vernova has been one of Frankie's greatest investment successes, reflecting his conviction in global electrification and infrastructure spending. Despite extraordinary gains, he continues viewing the company as a long-term compounder. GE Vernova provides power generation, renewable energy, and electric grid technologies.

Costco Wholesale (COST) closed at $951.67 and is up 106.10% since purchase. Average Analyst Rating: Buy. Frankie's Rating: Strong Buy. Costco's consistent execution and membership-driven business model continue making it one of Frankie's favorite long-term retail investments. Its resilience during various economic environments demonstrates the strength of the company's business model. Costco operates warehouse membership clubs serving millions of customers worldwide.

Nebius Group (NBIS) closed at $215.62 and is up 154.36% since purchase. Average Analyst Rating: Buy. Frankie's Rating: Strong Buy. Nebius continues expanding its artificial intelligence infrastructure and cloud computing capabilities, making it one of Frankie's highest-conviction growth investments. He believes demand for AI computing capacity will remain exceptionally strong over the coming years. Nebius Group develops cloud infrastructure and artificial intelligence computing services.

Tesla (TSLA) closed at $393.45 and is up 32.30% since purchase. Average Analyst Rating: Buy. Frankie's Rating: Strong Buy. Tesla remains one of the world's leading innovators in electric vehicles, autonomous driving, robotics, and energy storage. Frankie believes these multiple growth platforms support significant long-term upside. Tesla develops electric vehicles, autonomous driving software, battery storage systems, and robotics technologies.

ServiceNow (NOW) closed at $106.32 and is up 16.69% since purchase. Average Analyst Rating: Strong Buy. Frankie's Rating: Strong Buy. ServiceNow continues helping enterprises automate workflows while increasingly incorporating artificial intelligence into its software platform. Frankie believes enterprise AI adoption should continue driving long-term growth. ServiceNow develops enterprise workflow automation and artificial intelligence software solutions.

Aurora Innovation (AUR) closed at $6.63 and is up 70.00% since purchase. Average Analyst Rating: Buy. Frankie's Rating: Strong Buy. Aurora remains one of Frankie's favorite speculative growth investments because of its leadership in autonomous trucking technology. While the stock remains volatile, he believes the commercial rollout of autonomous freight transportation could create enormous long-term value. Aurora Innovation develops autonomous driving technology focused primarily on commercial trucking.

Meta Platforms (META) closed at $582.90 and is up 0.87% since purchase. Average Analyst Rating: Strong Buy. Frankie's Rating: Strong Buy. Meta continues investing billions in artificial intelligence while generating enormous cash flow from its advertising platforms. Frankie believes AI will significantly enhance Meta's products and profitability over the next decade. Meta Platforms owns Facebook, Instagram, WhatsApp, Threads, and one of the world's largest digital advertising businesses.

Microsoft (MSFT) closed at $390.49 and is up 125.29% since purchase. Average Analyst Rating: Strong Buy. Frankie's Rating: Strong Buy. Microsoft continues leading the enterprise artificial intelligence revolution through Azure, Microsoft 365, GitHub, Copilot, and enterprise software. Frankie considers Microsoft one of the highest-quality technology companies available to long-term investors. Microsoft develops cloud computing services, artificial intelligence software, cybersecurity products, and enterprise technology platforms.

The first half of 2026 has once again reinforced one of the most important lessons in investing: patience is often the greatest competitive advantage. Markets will continue to experience periods of uncertainty, geopolitical headlines will come and go, and individual stocks will occasionally test our conviction. However, investors who remain focused on owning outstanding businesses and maintaining a long-term perspective have historically been rewarded over time.

As a family, we continue emphasizing disciplined investing, continuous learning, and thoughtful portfolio management. We hope sharing our investment journey helps readers become more confident investors while encouraging the next generation to begin building wealth early. Whether you're investing in stocks, real estate, or your own education, consistency and patience remain powerful allies.

Thank you for spending part of your weekend with us. We appreciate your continued support of the Smart Wealth Newsletter, and we look forward to sharing another edition with you next week.

The information contained in the Smart Wealth Newsletter is provided solely for educational and informational purposes and should not be considered financial, investment, tax, or legal advice. The opinions expressed are those of Chris, Trip, and Frankie McLaughlin and are based on personal investment research and experience. All investing involves risk, including the possible loss of principal, and past performance does not guarantee future results. Readers should perform their own due diligence and consult with qualified financial, tax, or legal professionals before making any investment decisions. Portfolio holdings and opinions are subject to change without notice.