Free Cash Flow Is King | The Week in Charts (10/27/26) | Charlie Bilello | Creative Planning

Creative Planning • 4 days ago

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What This Video Is About

This episode of Weekend Charts covers several important charts and themes in markets and investing. The discussion begins with the significance of free cash flow, highlighting the strong performance of companies like Apple and Nvidia, which have high free cash flow.

Major Ideas Discussed

  • The MAG 7 companies, including Apple, Nvidia, and others, show varying results when ranked by free cash flow, with Apple and Nvidia leading the way.
  • Meta's free cash flow has declined significantly due to spending on AI infrastructure, resulting in a negative free cash flow number for the first time in its history.
  • Credit concerns are rising, with increasing equity and debt issuance, particularly in AI-related areas, and widening spreads for hyperscalers like Nvidia, Microsoft, Alphabet, Amazon, and Meta.
  • The upcoming Anthropic IPO is expected to be one of the largest in history, with a potential market value of $2 trillion, but the company faces several risks, including infrastructure commitments and revenue growth sustainability.
  • The spread between French and German bonds has widened, with French 10-year government bond yields above 5% and German yields between 3.25% and 3.50%, due to France's fiscal deficit and low growth rate.
  • The Fed is expected to hold interest rates at 3.75% to 4% but signal more rate hikes are coming in December, following market expectations.
  • The US healthcare system is fundamentally broken, with average family health insurance premiums rising to $28,000 per year, driven by government spending in excess of market forces.
  • Despite concerns about declining reading habits, sales of print books have increased nearly 25% from a decade ago, and independent bookstores have climbed steeply since 2009.

What to Watch Next

The speaker suggests monitoring the Fed's interest rate decisions, the performance of companies with high free cash flow, the progress of the Anthropic IPO, and the developments in the US healthcare sector, as well as the trends in reading habits and book sales.