May Be a Little Too Much Market Exuberance, Says Julian Emanuel

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00:00Julian Emanuel of Evercore writing, it's a week where decades happen.

00:03Short term, we see the potential for a hypercharged S&P 500 move above 7K

00:08as equally probable to a setback to 65.50.

00:13Julian joins us now for more. Julian, good morning.

00:15Good morning.

00:16Julian, sir, help me.

00:18When you write something like that, what on earth am I meant to do?

00:20What do people do with that?

00:21So you have to focus on the long term, OK?

00:25The long term for us is 77.50 at the end of 2026.

00:30But I will say over the last week, I have been getting sort of derisive jokes

00:35about that price target not being aggressive enough.

00:38And that to us signals maybe there's a little bit of too much exuberance.

00:44And then again, you step back and you see all this event risk coming,

00:51whether it's earnings, whether it's geopolitics, whether it's the Fed,

00:55there's a lot of positivity priced in in the here and now.

00:59Let's go through the event risk.

01:00So tech earnings later and again tomorrow, the trade conversation in South Korea

01:04between the U.S. and China and a Federal Reserve decision later on this afternoon.

01:08Out of those three, what's more fragile?

01:11What's going to be the source of that volatility potentially for you?

01:14I would say it's going to be earnings, OK?

01:19Because step back again and your comments at the beginning, President Trump wants to have

01:25this meeting go very well with Xi.

01:29I think if anything, he's got the memory of the two of them sort of hand in hand at Mar-a-Lago

01:35all those years ago and thinking about that same kind of positivity.

01:39And look, there are a number of issues that, you know, real honest to goodness wins can

01:45be scored in the here and now, although there's going to be, you know, further negotiation that

01:50will certainly be going on.

01:52But again, for us, it is the same story that it has been that was at the trough in April

01:59is that earnings are going to be good.

02:02The question is, how much in the here and now is priced in the stocks?