We Learned Nothing - Let's do it Again and Knock your SOXX off.

Today is Friday, September 18th 2026. Investors often say "I've seen this movie before" for a series of events that reminds them of years ago. A long career isn't required for this action though, as we saw AI infrastructure relentlessly rally through June 2026, only to plummet in July as leverage unwound. Apparently investors liked that movie because we're doing it again here in September.

In my portfolio are companies like H&R Block, which pays a 4.2% dividend, repurchases over 7% of its shares annually, and is growing profits at mid single digits. HRB trades at 6 times next years earnings per share. That's right, a single digit P/E ratio for a growing company.

What didn't work?

Clearly the short-term is against value, so investors' patience is being tested. As I mentioned, the same trades happened in June of this year, with AI infrastructure going up while value went down. I called it a black hole - the gravity of AI infrastructure is attracting capital away from other stocks. It didn't end well in July and I don't think it will end well this time. Until then, value is not working.

Next up is On the Hunting Trail for Value

If you're on the hunting trail, know that you can leave the trail, put your feet up, and make 5% risk free in the US ten year bond. For companies that have little to no profits today but expected to grow significantly in the future, this higher discount rate means their shares should trade lower today. That is not happening and that is the danger I see on the trail.

Wrapping Up:

The AI Infrastructure trade kicked back into high gear this week, but investors who lived through this summer know what happens when the trap door opens. If you let the numbers guide you, there is certainly opportunity in value, but it will take some guts to avoid the FOMO from the growth stocks. Thanks for listening and have a great weekend.

Website: https://frankfunds.com

Brian X Account: https://x.com/bfrankvalue

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