What we’re reading (1/8)
“The Stock-Market Rally Isn’t Just About Tech Anymore” (Wall Street Journal). “Investors are finally showing love to companies outside of the tech sector. Growing economic optimism, along with a more cautious view of the artificial-intelligence build-out, is prompting a major “rotation trade” on Wall Street, with investors selling technology stocks and buying up the shares of most every other type of business.”
“Why Big Tech Stocks Are So Much More Attractive Than They Were Only Two Months Ago” (MarketWatch). “For most Big Tech stocks, forward price/earnings ratios have declined recently, and it is not only because share prices have fallen. Forward price/earnings ratios are current stock prices divided by consensus 12-month earnings-per-share estimates among analysts working for brokerage and research firms. For this article, the forward P/E ratios are based on LSEG’s “smart estimates,” which are adjusted weekly to remove extreme outliers among the analysts’ estimates, as well as individual estimates that have not been revised recently.”
“This Simple Metric Could Predict Future Stock Market Returns” (Morningstar). “groundbreaking study, published in the September 2025 issue of the International Review of Economics & Finance, reveals that a surprisingly simple metric—the difference between current S&P 500 earnings yield and long-term real Treasury Inflation-Protected Securities yield—has significant power to possibly predict stock market returns. The research demonstrates that when actual returns deviate from this baseline prediction, these deviations are systematically related to inflation, monetary policy, and economic fundamentals, offering investors a new lens for understanding market dynamics.”
“Rebuilding Ukraine Could Be Top European Investment Theme Of 2026” (Joachim Klement, Reuters). “Rebuilding is expected to cost around $524 billion over the next decade, and it will likely be financed mainly by the European Union and the private sector. Brussels has signalled that, in exchange for its support, it expects European companies to win the bulk of rebuilding contracts. Washington is likely to attach similar conditions, steering any money invested in Ukraine’s reconstruction back toward U.S. contractors.”
“Artificial Intelligence Begins Prescribing Medications In Utah” (Politico). “The state has launched a pilot program with health-tech startup Doctronic that allows an AI system to handle routine prescription renewals for patients with chronic conditions. The initiative, which kicked off quietly last month, is a high-stakes test of whether AI can safely take on one of health care’s most sensitive tasks and how far that could spread beyond one AI-friendly red state.”
