Are U.S. equities overvalued, or are opportunities hiding in plain sight?

In this episode of Upside Capture, host David Stubbs speaks with Tom Cole, co-founder of Distillate Capital, about how investors are assessing today’s market valuations. Tom shares his perspective on why free cash flow has gained attention as a measure of value, particularly as the economy has become increasingly shaped by intangible investments.

The conversation explores the historical context of value investing, comparisons to the dot-com era, and several areas of the market currently drawing investor interest, including small-cap and international equities. David and Tom also discuss concentrated market leadership and approaches such as equal-weight indexing as examples of how market participants are thinking about diversification and portfolio construction in today’s market environment.

Disclaimer: This presentation and the information contained herein may not be reproduced, in whole or in part, in any format without AlphaCore’s express prior written consent.

Certain information contained herein has been obtained from published and non-published sources prepared by third parties. While such information is believed to be reliable, AlphaCore does not assume any responsibility for the accuracy or completeness of the information, which is based on matters as they exist as of the date of this podcast and not as of any future date. Before embarking on any investment program, you should carefully consider the risks and suitability of a strategy based on your own investment objectives and financial position.

Disclaimer: This podcast is being provided for informational purposes only and does not constitute an offer or solicitation, and should not be considered tax, legal, or accounting advice. The information represents the current views and opinions of the speakers as of the date of this podcast, and there is no guarantee that any opinions will prove to be accurate, or any forecasts made will come to pass. No obligation is undertaken to update any information, data, or material contained herein. This communication is not recommending the purchase, sale or hold of any security.

This presentation and the information contained herein may not be reproduced, in whole or in part, in any format without AlphaCore’s express prior written consent. Certain information contained herein has been obtained from published and non-published sources prepared by third parties. While such information is believed to be reliable, AlphaCore does not assume any responsibility for the accuracy or completeness of the information, which is based on matters as they exist as of the date of this podcast and not as of any future date. Before embarking on any investment program, you should carefully consider the risks and suitability of a strategy based on your own investment objectives and financial position.

Timestamps:

0:00 – Intro & Guest Introduction (Tom Cole, Distillate Capital)

0:31 – Disclaimer & Podcast Overview

0:50 – Welcome Tom / Setting the Stage

1:21 – US Equity Return Expectations & Valuations

1:39 – Role of Free Cash Flow in Returns

3:49 – Why Free Cash Flow vs. Price-to-Book / Price-to-Earnings

4:57 – History of Value Investing (1960–1990)

6:05 – Economy Shift: Tangible to Intangible Assets

8:45 – Free Cash Flow as the New Value Measure

11:03 – Where to Find Opportunity in Today's Market

11:21 – Sector Opportunities: Healthcare, Industrials

15:41 – International Markets & Small Caps

18:20 – Today's Market vs. the Dot-Com Era

18:43 – AI Hype & Valuation Similarities to 2000

19:44 – Comparing Free Cash Flow Yields: Now vs. 2000

21:02 – What Happened 2 Years After the Dot-Com Peak

22:03 – Price vs. Fundamentals: The Eternal Lesson

22:57 – Valuation Always Matters in the Long Run

23:27 – Wrap-Up & Where to Follow Tom / Distillate Capital