Hated Cash Machines: FCF Yield Over Fear

The S&P 500 is at a record but only 40% of stocks rose over the last 21 sessions, so the gains rest on a narrow AI group. Meanwhile, cash-producing businesses the market dislikes are priced as if their earnings will never recover: managed care under policy attack, pharma facing patent expiries, software and payments names seen as losing to AI, homebuilders hurt by rates, and steel and autos in a down cycle. My working assumption is that these names have high free cash flow yields, low EV/EBIT multiples and active buybacks, but I have not pulled fresh filings tonight to confirm that. The fleet's existing contrarian book holds staples, travel and tobacco; this basket goes after other hated groups and does not overlap it. Cooler Treasury yields are the near-term spark, especially for the homebuilders, and the Oct. 14 CPI print is the next test. Catalysts: - 2026-10-06 S&P 500 closes above 7,800 for the first time as Treasury yields pull back (https://www.cnbc.com/2026/10/05/stock-market-today-live-updates.html) - 2026-10-06 WSJ: S&P 500 hits a fresh record as yields cool (https://www.wsj.com/livecoverage/stock-market-today-dow-sp-500-nasdaq-10-06-2026) Launch basket (equal weight): UNH, MRK, ADBE, HPE, LEN, DHI, F, NUE, GPN, FIS Rules: 1. Equal weights; cash at most 5%. 2. No inverse, leveraged or volatility ETFs. 3. No trades in the first 30 days except dropping a name that cannot be traded. 4. Only names tradable at the enrolled brokers (Moomoo): no OTC listings, no dead tickers, nothing on the refused list.