Julian Koski, co-founder and CIO of New Age Alpha, joins Remy Blaire to discuss the recent pullback in major stock averages following hotter-than-expected core CPI figures, while the S&P 500 continues to reach new record highs, largely driven by advancements in AI.
Julian emphasizes that despite the behavioral reactions in the market, it’s not yet time to panic. He highlights that the core CPI figures, while slightly higher than expected, do not indicate a fundamental shift in earnings. They also explore the implications of rising oil prices and their potential impact on consumers.
A significant portion of the conversation focuses on the AI sector, particularly Nvidia, which Julian believes is undervalued based on its historical growth rates. They also touch on Alphabet, where he notes a low probability of failure in delivering growth, contrasting this with concerns about Tesla, which he feels is trading on vague storytelling rather than solid fundamentals.
Julian shares his approach to valuing stocks, likening it to how insurance companies assess risk, and discusses the importance of focusing on known information rather than market noise. They also examine the volatility across various asset classes in 2026 and how he assesses risk using four key measures, including Fed decisions and leading economic indicators.
As they look ahead, Julian expresses a bullish outlook on the U.S. economy, while acknowledging the unique challenges faced by European and emerging markets. He stresses the importance of evaluating individual companies rather than making blanket statements about entire economies.
