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Value is Back in Vogue

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It’s not just the long asked question of whether the large capital expenditure spending into AI and the valuations put on those companies is worth it, or how long investors are prepared to wait for results, markets are now turning their attention to which business models are under threat from AI.

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With uncertainty around AI unresolved, investors are looking elsewhere and are turning to Value. Therefore the recent rout is a rotation, not a sell-off. On Tuesday two thirds of the S&P 500 stocks rose in value. Investors haven’t lost confidence in AI, they are simply seeking out those companies who will most benefit from it.

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In the US there remains confidence in their economy and consumers will soon benefit from One Big Beautiful Bill Act stimulus.

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Our client portfolios are well positioned - whilst we have a foot in the Growth story, we are heavily invested into the type of Value companies currently having their day in the sun.

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Comments by James Scott-Hopkins, Founder, EXE Capital Management.

The views are those of the author only. The above does not constitute a recommendation to buy specific funds or assets and advice should be sought from your financial advisor as to the appropriateness of this in your portfolio. The value of investments can fall as well as rise.

Past performance is no guarantee of future returns.‍‍

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