Tomorrow on @CNBCClosingBell: @billfour will join @ScottWapnerCNBC to talk the value trade, in the 3pm ET hour.

Higher rates have reset the return opportunity across bonds and equities.

But the critical variable isn't the direction of rates alone. It's the price investors pay relative to the cash flows and returns those assets can generate.

Monday on @CNBCClosingBell: @billfour will join @ScottWapnerCNBC to discuss the value trade.

Tune in during the 3pm ET hour.

Five-year TIPS offered a -1.99% real yield in 2021. By Q3 2026, that yield had risen to +2.70%. That's a 469-basis-point improvement in the inflation-adjusted yield available to investors.

Higher rates can materially improve prospective returns on new investments.

Value's consistent outperformance over growth across market capitalizations YTD is notable.

It reinforces the importance of separating market narratives from the actual distribution of returns. Valuation, earnings expectations, and company-specific fundamentals do not evolve rket.

Neither do investment opportunities.

Today's AI-led sell-off exposed how much risk can be concentrated in a single investment thesis.

Diversification isn't just about owning more stocks. It's about owning businesses with different economic drivers and expectations embedded in their prices.

Investors don't have to choose between getting caught in every AI market swing and sitting out the market.

There are profitable businesses across financials, energy, healthcare and other sectors trading at valuations that reflect lower expectations today, but have high future potential. The opportunity set is much broader than the market's focus suggests.

Changes in expectations can have an outsized impact.

Looks like there are pockets of small and mid cap value being spared in today's sell off.

Higher yields create opportunity when prices decline more than underlying fundamentals warrant. But when yields rise because cash flows are deteriorating or financial risk is increasing, the apparent opportunity may be misleading.

The difference is in the underlying economics, not the quoted yield.

The Fed held rates at 3.75%–4.00% last week, with two policymakers favoring a hike. The 10-year Treasury yield approached 5%.

Elevated long-term rates are changing the economics of income investing, from the returns available on Treasuries to the valuation of riskier assets.

Concentrix ($CNXC) has earned Everest Group recognition across four business-critical areas—including Leader designations in fraud management and trust & safety. globenewswire.com/news-release/2…

MVP-managed portfolios hold CNXC; holdings may change. Informational only; not a buy/sell recommendation. Linking does not imply endorsement of MVP.

The 47 biggest AI/chip stocks lost ~$5T in value since Oct 6, per Yahoo Finance. The other 625 large US stocks gained ~$1.3T. The S&P slipped last week even as 9 of 11 sectors rose 1%+.

Market leadership can change quickly... and forecasting short-term moves is a waste of time.

Our approach is to identify businesses trading at attractive valuations relative to their future potential, not chase whichever segment is leading.

We believe there's a much broader opportunity set than the AI trade alone.

Interesting day yesterday with more than 400 names in the S&P 500 going up and the Russell 2000 ending higher in a 4 day streak.

Quite a reversal from what we saw at the end of Q3....

Market concentration has widened valuation disparities across U.S. equities. And while market leaders command elevated multiples, many businesses trade at prices reflecting depressed expectations.

In this market, we think distinguishing businesses that are genuinely impaired from those whose prices underestimate their earnings power and long-term value provides better long-term return potential .

HEYDUDE returned to growth in Q3 2026, with revenue up 6.1%. Crocs raised its outlook, and Barron’s reported shares rose over 20% following the October 29 results. Changing fundamentals can reshape expectations—but one quarter does not establish a sustained recovery.

Via Barron’s: barrons.com/articles/crocs…
$CROX

MVP-managed portfolios hold CROX; holdings may change. The stock move is not MVP investment performance. Shares may decline. Informational only; not a buy/sell recommendation. Barron’s is independent; linking does not imply its endorsement of MVP.

AI leaders command extraordinary valuations. Some perceived AI casualties trade at just 2x earnings.

The gap between market expectations and business fundamentals is widening.

Bill Miller IV and Dan Lysik will explore both sides of the AI trade on MVP LIVE. LIVEstreaming here at 4:15pm ET.

The 30 largest U.S. stocks now represent 50% of total market capitalization. Meanwhile, 83% of S&P 500 constituents finished Q3 at least 10% below their 52-week highs.

Is that a signal the opportunity set exists beyond the largest stocks?
Join us for MVP LIVE tomorrow, Oct 27 at 4:15pm ET: events.zoom.us/ev/Albg0Trvoll…

The combined market capitalization of the five largest S&P 500 companies is approximately six times that of the entire Russell 2000.

And Small-cap equities experienced one of their weakest rolling 10-year periods of relative performance in the past century.

The resulting valuation disparities reflect prolonged underperformance and depressed expectations across significant portions of the small-cap universe.

Dan Lysik explores in his latest letter: millervalue.com/taking-advanta…