Weekly Market Commentary 8-31-2026

"Value is Back in Style: The Rotation in Context"
See what we have to say about the following:

 

 

 

 

·        Value is Back in Style: The Rotation in Context – Higher interest rates and persistent inflation are driving investors toward companies with strong cash generation, helping value stocks outperform growth in the current market regime.

·        Value Factors: Why FCF Yield Deserves the Spotlight – LPL believes free cash flow yield is one of the most effective measures of intrinsic value because it better reflects the cash available to investors after business reinvestment needs.

·        Hyperscalers and the AI Capex Cycle: Cheap on Earnings, Expensive on FCF – While major AI-focused technology companies appear reasonably valued based on earnings, rising AI-related capital spending has significantly reduced their free cash flow, creating greater investor scrutiny.

·        STAAC Commentary / Asset Allocation Insights – STAAC maintains an overweight to equities and favors quality, industrials, and energy sectors, supported by an improving economic backdrop and continued AI-driven earnings growth.