9 Oct 2026
Value Stocks Get a Pulse this Week While AI and Memory Stocks Suffer
Today is Friday, October 9th 2026. They say every dog has his day, and the value dogs had several good days this week. In fact, on just Thursday and Friday alone, my fund, the Frank Value Fund, outperformed the NASDAQ by a large enough amount to negate the last two plus weeks of pain. Now, a couple of good days for value do not make a trend, but there are several positive signs.
More investors are questioning the ultimate returns on AI infrastructure while rotating towards AI beneficiaries like healthcare. The S&P 500 healthcare sector returned nearly 3% this week while the memory ETF lost over 7%.
In my opinion, fundamentals are far more important than short-term flows, and we had major fundamental developments in our Independent Power Producers this week. First, the Department of Energy announced a $4 billion loan to Vistra, ticker VST to further develop their nuclear assets.
Next up is On the Hunting Trail for Value
I mentioned last week I had deployed nearly 100% of our cash. Obviously, this was good timing given the bounce this week, but I was prepared to continue rotating aggressively into better opportunities. When value bounces, it is hard to find these additional opportunities, but that is a good thing - we are making money.
Wrapping Up:
Staying the course for value paid off this week. While it is nice to have the bounce, I am reluctant to call it a trend just yet. Good fundamental developments on IPPs and other stock repurchases add to the long-term case for value. Stay tuned for earnings season, my favorite four times of the year! Thanks for listening and have a great weekend.
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