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

• AI's emergence suggests a potential re-rating of market valuations, with the S&P 500 multiple possibly needing to come down (e.g., to 20x).
• Companies with intellectual capital and wide margins, which have driven market gains for a decade, may be more vulnerable to AI disintermediation.
• Defensive picks include Verizon (VZ), Chevron (CVX), AbbVie (ABBV), and Citizens Financial (CFG), offering reasonable valuations and growing dividends.
• Growth picks include Paychex (PAYX), Amazon (AMZN), and Rezolute (RZLT), with Rezolute highlighted as a speculative but promising biotech.

The expert discusses how artificial intelligence is prompting a re-evaluation of market valuations, suggesting that asset-light companies may be more vulnerable to disruption. He advises clients to consider a shift towards 'value stocks' with unreplicable assets and strong dividends, while also identifying specific growth opportunities.