There may be some value in the 'value stocks,' expert advises

Core Insights - The investment landscape is shifting, with a focus on companies that primarily sell intellectual capital, which have enjoyed high margins and significant free cash flow [1][2] - The rise of AI poses a potential threat to these businesses, suggesting that traditional value stocks may regain attractiveness [3][5] - Valuation multiples for the S&P have been adjusted from 22 times to 20 times, reflecting concerns about the sustainability of high valuations in the current market [4][7] Company and Industry Analysis - Companies generating free cash flow are seen as attractive investments, contributing to rising stock market valuations [2] - Defensive stocks such as Verizon, Chevron, and ABV are highlighted for their unreplicable asset bases and reasonable valuations, offering dividend yields between 3% and 5% [8][9] - Growth stocks like Paychex and Amazon are mentioned, with a speculative stock, Resolute, noted for its potential despite recent volatility [11][12][14] - The market is expected to yield high single-digit returns, making dividend-paying stocks more appealing to investors [10]