This is the first time this has happened in DECADES: JPMorgan global strategist

PACE OF JOB GROWTH FALLING TO A MEASLY 5000. THE SECOND POTENTIAL IS 58 MINUTES AWAY, THREE MAJOR NAMES IN THE HYPER SCALARS BUILDOUT ABOUT TO REPORT EARNINGS. CORE, WE'VE MUST'VE OF MICRO WHICH MAKES COOLING SYSTEMS AND MOMENTUM THE SUPPLIES CLOUD AND NETWORKING EQUIPMENT REPORT EARNINGS AFTER THE BELL. AND HE MISSES HER BEADS COULD SET THE STONE. LIFT OR LOWERED THE ENTIRE STOCK MARKET. ARE YOU TWO OVER OR UNDER EXPOSED TO THE HYPER SCALARS SECTOR RIGHT NOW? JOINING ME NOW, J.P. MORGAN ASSET, DAVID IS HERE, OVEREXPOSED OR UNDER EXPOSED AS IT PERTAINS TO HOW THE STOCKS HAVE BEEN MOVING? >> A HEALTHY AMOUNT OF EXPOSURE ON THE MARKET AND BLAMING IS YOU HAVE SUFFICIENT AND EXTENDED EXPOSURE AMONGST RETAIL COMMUNITY, BUT THE FUNDAMENTALS ARE SUPPORTIVE OF TAKING THAT RISK. IN AN ENVIRONMENT WHERE EARNINGS WERE NOT MATERIALIZED AND PEOPLE OWN BUSINESSES WITH THE SCALE THEY DO TODAY, WE BE CONCERNED BUT ONE OF THE THINGS HERE OVER THE PAST COUPLE WEEKS IS THE MARKET CAPITALIZATION OF HYPER SCALARS AND EARNINGS CONTRIBUTION TO THE OVERALL INDEX EARNINGS NEVER HAVE COME BACK INTO BALANCE SO IF YOU HAVE A FAIR AMOUNT OF EXPOSURE IS NOT CONCERNING BECAUSE THE METALS ARE THERE IN SUPPORT OF. >> LET'S SHOW THE FUNDAMENTALS. WE PUT TOGETHER EARNINGS AND NUMBERS FOR HYPER SCALARS MOST RECENT QUARTER. LOOK AT MICROSOFT 23%, IT LOOKS GREAT. GOOGLE, APPLE, BUT OF 294% YEAR OVER YEAR AND AMAZON EARNINGS TO 42%. IT MAKES YOU COMFORTABLE ENOUGH TO TELL CLIENTS OKAY TO ADD TO YOUR POSITIONS, BUT WOULD YOU WAIT TO PULL BACK? >> WITH EQUITIES IT'S NOT LEVEL THAT MATTERS, IT'S RATE OF CHANGE SO YOU SEE GROWTH RATES THAT ARE ROBUST, THERE'S ROOM FOR DISAPPOINTMENT IF THE GROWTH RATE SLOWS. WE DON'T EXPECT EARNINGS GROWTH TO SLOW MATERIALLY, I THINK TWO OR THREE 100% NUMBERS WILL NORMALIZE BUT IT'S IN THE PRICE. WHAT I DO THINK IS ABLE AT MORE TO THE NAMES OF THOSE OF DISAPPOINTMENT ON EARNINGS. THE IMPORTANT THING I WOULD LIKE AS THEY HAVE GOTTEN CHEAPER OVER THE PAST COUPLE OF MONTHS SO FOR NO LONGER PAYING A PREMIUM WEIGHT YOU WERE EARLIER IN THE YEAR, THERE MAY BE A BETTER ENTRY. >> WE COULD SHOW THE MARKETS YEAR TO DATE AND YOU CAN SEE THE MOVE ON THE SHOW, YOU BASICALLY SAID YOU WERE PRO- RISK, ALTHOUGH THE RED WAS IN THE VALUATIONS WHICH WERE TO HIGH BUT YOU SAID BY ON THE TIPS AND STAY EXPOSED TO THE MARKET AND YOU CAN SEE WHAT STOCKS HAVE DONE SINCE THEN. THE S&P, THE DOW, NASDAQ ALL UP HERE TODAY IN A SIGNIFICANT WAY AND THEREFORE A CORRECT CALL, WHICH GIVE YOU PAUSE? WHAT WOULD MAKE YOU CHANGE YOUR RISK ASSESSMENT? >> THE BIGGEST THING THE BEEN WATCHING HIS HOW CREDIT MARKETS ARE BEHAVING RELATIVE TO EQUITY MARKETS BECAUSE ONE THING, AS PART OF THE AI TRADE IS YOU SEEN BUSINESSES ISSUE OF HER, OF DEBT IN THE INVESTMENT MARKET AND OTHERS IN THE HIGH YIELD MARKET AND WE KNOW, SPECIAL PURPOSE VEHICLES AND FINANCING I'M WATCHING FOR IS INDIGESTION AND CREDIT MARKETS MANIFESTS ITSELF AS INDIGESTION IN THE EQUITY MARKET. SPREADS HAVE BEEN WIDENING ON HYPER SCALARS THAT BUT REASONABLE LEVEL COMPARED TO COST OF FINANCING RELATIVE TO THE SIZE OF THE BUSINESS, BUT THEY WIDEN FURTHER IF YOU SEE ISSUES NOT TAKEN DOWN WITH THE SAME AMOUNT OF DEMAND WOULD GIVE ME CAUSE ESPECIALLY IF IT SHOWS UP IN EQUITY SO FOR US, IT'S ABOUT BALANCING THESE TWO THINGS IN PORTFOLIOS. WE CAN GET HEALTHY STREAMS OF INCOME FROM CREDIT AND CLEARLY THERE ARE CRACKS FORMING IN EQUITIES ARE RICH SO WE NEED TO BE CAREFUL THERE AS WELL. >> YOUR TITLE IS GLOBAL STRATEGIST, WHERE YOU SEE OPPORTUNITY. >> FOR US, IT'S A QUESTION OF HOW WE BUILD DIFFERENT EXPOSURES TO THIS TECHNOLOGY THEME SO THE U.S. IS PROBABLY THE BEST WAY OF DOING IT AND I DON'T THINK ANYBODY WOULD DISAGREE. EMERGING MARKETS ARE ANOTHER WAY, EUROPE BEING MORE SELECTIVE IS NOT A TRADE FROM WHERE WE SIT AT THE U.S. AND EM WE THINK WE ARE BUILDING AN INTERESTING RISK GROUP PORTFOLIO BUYING CHEAPER AND SOME STUFF HIGH QUALITY AND WHEN YOU MIX IT TOGETHER TO GET THE EXPOSURE TO THE TECH STORY, WHICH WE BELIEVE CONTINUES. >> THERE ARE JAPAN ETF'S AND WE BEEN SHOWING THEM ON THE SCREEN, I DON'T KNOW IF YOU WANT TO GET ON THE MARGINS AND EDGE LOOKING AT MORE RISK, BUT DOES NOTHING TO BE PAUSE ABOUT THE FACT THAT TREASURY RECENTLY INTERVENED TO PROP UP THE YEN. >> THE JAPAN STORY IS A STRUCTURAL STORY AND WE NEED TO WATCH WHAT HAPPENS WITH THE CURRENCY GOING FORWARD BUT GIVEN THE WAY OF THE CENTRAL BANK REACTION FUNCTIONS ARE EVOLVING WE WILL PROBABLY SEE THE ABILITY GOING FORWARD. FOR US, IT'S ABOUT THE FACT THAT JAPANESE ECONOMIES GENERATING NOMINAL GROWTH FOR THE FIRST TIME IN DECADES. YOU SEE, CORPORATE GOVERNANCE REFORM AND SHAREHOLDER FRIENDLY HATER AND HE PUT THIS TOGETHER AND LOOK AT THE VALUATION AND FOR US, IT'S AN INTERESTING PLACE TO PLAY HAND MORE UPSIDE MARKET LIKE EUROPE. >> I KNOW WE OFTEN HIT NEGATIVE SIDE BECAUSE I STARTED IN LOCAL NEWS AND ALWAYS LOOKING FOR THE WORST SIDE OF EVERYTHING BUT NVIDIA MADE A HUGE ANNOUNCEMENT WITH THE BIGGEST OF THE BIG ON WALL STREET BLACKROCK, BLACKSTONE, GOLDMAN SACHS, AND ALL THESE NAMES COMING TOGETHER FOR $500 BILLION FUND PUT TOGETHER TO BE INVOLVED IN CHIPS BECAUSE THEIR BEST IN CLASS WHEN IT COMES TO THE DATA CENTERS. WALL STREET HANDED NVIDIA, THE BIGGEST PART IN HISTORY. WHEN PEOPLE HAVE A BIG CREDIT CARD, SOMETIMES THEY ABUSE IT. JENSEN IS PLATINUM STANDARD, BUT YOU HAVE INTEL NOW YESTERDAY IT WAS 15 BILLION AND FLOATING 20 BILLION STOCK OFFERING BECAUSE THEY NEED TO GET THAT MONEY. GOOGLE HAS DONE THE SAME THING. DOES ANYTHING MORE YOU ABOUT THAT? >> THERE'S A LOT OF MONEY TRYING TO THE ECONOMY RIGHT NOW. IF YOU LOOK BACK TO THE INTERNET IN THE 90s AND THE INDUSTRIAL REVOLUTION, THERE ARE COUNTLESS EXAMPLES OF WHEN WE HAVE THESE INVESTMENT BOOMS, THE QUANTITY OF MONEY THAT ENDS UP BEING SPENT SO THE NUMBERS IN AND OF THEMSELVES DON'T NECESSARILY CONCERNING BECAUSE OF THE END OF THE DAY IF THE RETURN ON THE INVESTMENT IS THERE THAN THE CAPITAL STRUCTURE IS HELPFUL GETTING YOU TO THE END RESULT. WHAT WOULD MAKE ME NERVOUS IF WE SAW THE MONEY USED FOR LESS PRODUCTIVE PURPOSES OR PURPOSE IS NOT NECESSARILY CLEAR AND WHEN THE HYPER SCALARS REPORT, YOU WILL NOT SEE THE RETURN ON INVESTMENT MATERIALIZE THE CLOCK BUSINESSES IN PARTICULAR SO SPENDING FOR THE SAKE OF SPENDING WILL MAKE US NERVOUS RIGHT NOW IT SEEMS LIKE A REAL USE CASE AND YOU LOOK AT THE ESTIMATES OF WHAT'S NEEDED FROM THE COMPUTE PERSPECTIVE, IS CLEARLY MORE WORK THAT NEEDS TO BE DONE. >> I REMEMBER, DOUBLE-CLICK HAVE THE CHOCOLATE PARTY SPENDING MONEY ON BIG