Ed Ludlow

Tyler Kendall with all the latest when it comes to geopolitics.

We so appreciate it.

Look, let's get to how that affects you in the market.

Stephanie Aliaga is with us, global market strategist for J.P.

Morgan Asset Management.

Been tracking the intersection really of geopolitics, of earnings, of fundamentals, of AI-driven market right now.

Let's just focus on the Iran and the tensions.

How much is that seeping into the general optimism around CapEx AI and continuing to be in tech?

Yeah.

Markets are trying to use the ceasefire as a de facto end to the war, and clearly we're not in the full, like, coast is clear just yet.

But we do think, when we think about the balance of risk out here, it is far more likely that this conflict winds down in the matter of days or a couple weeks than the alternative scenario of this extending into the summer.

And when things extend into the summer, that is where the macro picture really begins to dim, and that flows through to markets and earnings.

However, the scenario that I think we're in right now

It is one that is a pretty constructive setup for equities from here.

I mean, valuations have contracted meaningfully.

We mentioned tech, like in the tech sector, valuations today are cheaper than consumer staples.

There's been a pretty meaningful decline there.

And if you look at even valuations for some of the individual names, they're tracking below where they were before this AI boom even got started.

So investors today are paying a cheaper price

for robust earnings.