From CNBC:

Evercore ISI’s Julian Emanuel believes that Nvidia’s remarkable surge is creating a fear of missing out in the market. Clients, including those who traded during the dot-com era, are more worried about being underinvested than overexposed. Emanuel sees similarities with Y2K, citing momentum around artificial intelligence and optimism about avoiding a recession as major drivers.

On Monday, the Dow Jones closed at a historic high of 38,797.38. The Nasdaq Composite, up 6% this year, is less than 2% away from its all-time high. Meanwhile, Nvidia, a leader in AI chips, has surged 46% this year and 240% over the past year.

Emanuel predicts a 13% pullback in stocks this year, which he considers normal in a non-recession period. He advises investors to be prepared to buy during a dip. Despite this, he has not completely ignored the winning growth trade and has invested in communication services, consumer staples, health care, and money markets. His year-end target for the S&P 500 is 4,750, implying a roughly 5% loss from Monday’s close.



Read more: Nvidia rally fueling FOMO in overall market: Evercore’s Julian Emanuel