Nvidia fuels FOMO in the overall market: Julian Emanuel at Evercore

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Fear of missing out underpins 'supercharged momentum market': Evercore ISI's Julian Emanuel

Julian Emanuel at Evercore ISI believes that Nvidia’s monster collection causes fear of missing out on the market.

He finds that clients, including many who traded during the dot-com boom and subsequent crash, are more concerned about being adequately invested than they are too big right now.

“That’s the first time that’s happened for us since 2021,” the company’s chief executive said on CNBC’s “Fast Money” Monday. “That’s a bit of a warning bell.”

In his Sunday note, Emanuel warned clients that Y2K-like things are emerging, especially when it comes to mobility. This time, he cites excitement around artificial intelligence and the idea that the US will avoid recession as key triggers.

“The mood is very positive. The bears have been eliminated,” he told CNBC’s Melissa Lee. “It’s time to think more about risk than reward so we can cool off a bit.”

Monday, the Ink The smallest stock dividend was 38,797.38. The technology-heavy Nasdaq Composite is up 6% so far this year and less than 2% off its peak.

At the same time, Nvidiathe global leader in artificial intelligence chips, up 46% so far this year and 240% over the past year.

Emanuel believes that stocks could go through a 13% pullback this year, which he considers normal during a non-recession. “If you don’t see yourself as a customer down there, maybe you should lighten up a little bit,” Emanuel said.

However, he has not completely ignored the winning growth trade.

“We’ve been on board in bits and pieces,” he said. “We like communication services. It has been a very good department. We believe there are protective factors.”

Emanuel’s top picks also include consumer staples, health care and money markets.

“At the end of the day, you’re still making 5% on money,” he said.

His S&P 500 The year-end target is 4,750, which means a loss of about 5% from Monday’s close.


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