SHARES TRADING UP 4.5, ALMOST 5% ON THIS NEWS. >> PEOPLE EXCITED. >>> SPEAKING OF, THE NVIDIA AND THE AI POWERED RALLY SHOWING LITTLE SIGN OF SLOWING TODAY WITH THE CHIPMAKER HITTING AN ALL-TIME HIGH. THE NASDAQ CLOSING ABOVE 17,000 FOR THE VERY FIRST TIME. NVIDIA IS UP NEARLY 20% SINCE ITS EARNINGS REPORT JUST LAST WEEK AND CHECK OUT SOME OF THE OTHER NAMES IN THE CHIP SECTOR HITTING ALL-TIME HIGHS TODAY MICRON, NXP, QUALCOMM AND TEXAS INSTRUMENTS. SHOULD THEY COUNT ON NVIDIA, JOINING US FUNDSTRAT HEAD OF REIC RESEARCH TOM LEE YOU'RE STILL BULLISH HEADING INTO JUNE. TOO LITTLE INVESTOR CONFIDENCE, TOO MUCH CASH ON THE SIDELINES BUT SEEMS TO BE FLOWING IN NOW SO HOW DO YOU INVEST AND NOT GET BURNED BY VOLATILITY >> WELL, THE -- IT HAS BEEN ONE OF THOSE YEARS WHERE, YOU KNOW, INVESTORS HAVE BEEN HESITANT ALL YEAR AND I THINK WE HAVE HAD SOME SHORT PULLBACKS, BUT I THINK THE BEST STRATEGY FOR INVESTORS IS STICK WITH WHAT'S WORKING AND AI RELATED NAMES, NVIDIA ARE HIGHLY CORRELATED STOCKS LIKE CADENCE OR SUPER MICRO. THE OZEMPIC RELATED TRADES, YOU KNOW, INDUSTRIALS, FINANCIALS DOING GREAT, AND THE BITCOIN AND THE PROXIES AS WELL AS I THINK A GROWING SMALL CAP STEALTH RALLY. I THINK THERE'S A LOT OF WAYS TO BE INVESTED IN THIS MARKET. >> THE SMALL CAPS HAVE BEEN HOT TO THE TOUCH, THOUGH, NOT IN A GOOD WAY ESPECIALLY WITH YIELDS OCCASIONALLY SPIKING ARE THERE CERTAIN AREAS WITHIN SMALL CAP THAT YOU SAY AVERAGE INTO OR HOW ARE YOU TREATING THEM COMPARED TO THE MAIN CAPS >> WELL, SMALL CAPS I THINK HAVE BEEN VERY SENSITIVE TO THE PROBABILITY OF A FED CUT I THINK THEY'RE SENSITIVE TO ACTUALLY WHEN THE FED BEGINS CUTTING AND THE, YOU KNOW, THE LAST FEW COMMENTS FROM THE FED HAVE ACTUALLY HURT SMALL CAPS BECAUSE THE ODDS OF A JUNE CUT HAVE BEEN PUSHED OUT AND MAYBE, YOU KNOW, THE ODDS OF A SEPTEMBER CUT ARE DIMINISHING. THAT WEIGHS ON SMALL CAPS, BUT IT DOESN'T TAKE AWAY FROM THE FUNDAMENTAL ATTRACTIVENESS OF SMALL CAPS EARNINGS GROWTH IS CLOSE TO 19%. THE MEDIAN RUSSELL 2000 STOCK AND MEDIAN P/E IS 11 TIMES, GETTING FAR BETTER EARNINGS GROWTH IN THE S&P AND A LOWER P/E MULTIPLE. >> WHAT'S INCREDIBLE ABOUT THAT IS THE FACT THAT WE WENT FROM AT THE BEGINNING OF THE YEAR A MARKET THAT WAS AGGRESSIVELY PRICING IN THIS FLURRY OF RATE CUTS TO NOW A MARKET WHERE STOCKS ARE CONTINUING TO MOVE HIGHER, AS INVESTORS DIGEST THE POSSIBILITY OR I GUESS ARE HOPING FOR THE POSSIBILITY THAT WE HAVE A FED TA DOESN'T RAISE RATES AGAIN BEFORE THE END OF THE YEAR THAT SEEMS TO BE THE THING THAT'S BEING TAKEN AS THE THING. EVERY TIME POWELL OR SOMEBODY ELSE COMES OUT AND SAYS WE THINK THE PEAK IS IN, WE DON'T THINK WE HAVE TO RAISE AGAIN, WE'VE REALLY SEEN INCREDIBLE PENDULUM SWING AND RAISES THE QUESTION, HOW MUCH NOW HINGES ON EARNINGS IF THAT'S GOING TO BE THE SCENARIO >> WELL, I THINK THAT'S SPOT ON. I MEAN FIRST, YOU KNOW, THE NUMBER OF EXPECTED CUTS HAS SHRUNK, BUT IT'S REALLY SHRUNK FOR THE RIGHT REASONS. THE ECONOMY HAS BEEN GOOD. INFLATION IS PROGRESSING, MAYBE NOT THE SPEED ANYONE WOULD LIKE, BUT THE REALITY IS, YOU KNOW, 3% OR EVEN 2.7% INFLATION IS REALLY GOOD FOR CORPORATE PROFITS, SO I THINK THE EARNINGS OUTLOOK IS FAR BETTER THAN MOST EXPECT. YOU CAN SEE THE BEATS BY NVIDIA AS AN EXAMPLE, BUT S&P EARNINGS NEXT YEAR MAYBE CONSENSUS AT 270 AND MIGHT BE CLOSER TO 280 YOU CAN SEE WHY THERE'S UPSIDE FOR STOCKS. >> WE JUST HAD THE S&P CLOSE AT 5306 TODAY I BELIEVE YOUR YEAR-END TARGET IS 5200. DOES IT NEED TO COME UP? HOW ARE YOU THINKING ABOUT IT? >> YEAH. I MEAN OUR YEAR-END TARGET IS TOO LOW BECAUSE, YOU KNOW, NEXT YEAR EARNINGS IF IT'S 280 AND YOU PUT A 20 MULTIPLE THAT'S WAY ABOVE 5200 BUT IT'S, YOU KNOW, IT'S ONLY EARLY JUNE AND I THINK WE'RE STILL DECIDING WHETHER OR NOT THERE IS A SPEED BUMP BETWEEN JUNE AND DECEMBER, BUT THE ODDS SAY 5200 IS TOO LOW. >> HOW DO YOU TREAT THE WEIGHT LOSS AND OVERALL HEALTH TRADE EPITOMIZED BY LILLY? IT'S UP AT REAL HIGHS NOW, THREE QUARTERS OF A TRILLION DOLLAR MARKET CAP, BUT BOUNCING AROUND IN THIS RANGE FOR ABOUT THREE MONTHS >> YEAH. IT'S I THINK A LOT OF LARGE CAP STOCKS HAVE BEEN LEADING SHOW SIMILAR PATTERNS OF SORT OF CONSOLIDATION AND, YOU KNOW, I THINK IT WOULD BE TOO EARLY FOR SOMEONE TO SAY THAT, YOU KNOW, OZEMPIC AND THE GLP-1 DRUGS HAVE PEAKED IT'S AN OPPORTUNITY FOR SOMEONE TO BE ACCUMULATING I DON'T THINK IT LOOKS THAT DIFFERENT THAN NVIDIA INTO EARNINGS OR MANY OF THE STOCKS THAT HAVE BROKEN OUT RECENTLY. >> U.S. STOCKS, IS THAT REALLY THE PLACE TO BE RIGHT NOW? ARE YOU LOOKING ABROAD, IF YOU HAVE AN ECB THAT'S GOING TO CUT BEFORE THE FED >> WELL, IT'S NICE TO SEE OTHER CENTRAL BANKS CUTTING BECAUSE YOU KNOW, FROM OUR PERSPECTIVE INFLATION IS PROBABLY TRACKING BETTER THAN MOST EXPECT. I THINK THE BEST COMPANIES, ESPECIALLY IN TECHNOLOGY AND FINANCIALS AND HEALTH CARE MOSTLY ARE IN THE U.S., SO I WOULD FEEL A LOT MORE COMFORTABLE RECOMMENDING INVESTORS ST
