Video Description

This week on Prof G Markets, Ed Elson and Scott Galloway are joined by Michael Cembalest, the Chairman of Market and Investment Strategy for J.P. Morgan Asset & Wealth Management, to discuss how J.P. Morgan is approaching the AI bubble. He weighs in on how violent the correction will likely be, shares how he’s preparing for a “profit taking spark,” and unpacks his top risks for 2026. Subscribe to our Markets Newsletter! https://links.profgmedia.com/markets-newsletter Order "Notes On Being A Man" now! https://amzn.to/4nl4VKo Note: We may earn revenue from some of the links we provide. Timestamps: 00:00 - Today’s number 00:55 - Today’s episode 04:40 - Interview with Michael Cembalest 04:54 - What are your reactions to what Aswath said on the podcast? 09:06 - What do you think about the fears of an AI bubble and how are you at JP Morgan thinking about it? 12:28 - What do you think of the idea that markets are now fragile and overly reliant on about ten companies? 16:45 - Is it wrong that the other hyperscalers are beginning to raise record amounts of debt? 19:33 - Do you agree that there’s a bubble but disagree with the extent and scale of the damage we’re going to see? 21:35 - Ad Break 22:55 - What do you make of the idea that the government might step in to support the Magnificent 10’s capex? 26:59 - What is your recommended asset reallocation other than just going into cash? 29:05 - What does a balanced or more defensive portfolio look like? 30:14 - How is tech valued at a large, in terms of paying you for the risk? 32:02 - How do we put this in the context of all of history and what does this look like compared to previous cycles? 38:19 - Do you see this as a turning point where we either get labor-market chaos or lower tech valuations? 43:00 - Ad Break 44:26 - What else should we know in terms of risks? 50:13 - Could you describe global fragmentation and inflation for us? 52:38 - What are you thinking about in terms of the Supreme Court ruling on tariffs right now? 53:28 - Do you think there might be a ruling where they have to pay back the tariffs to the companies the tariffs were imposed on? 55:37 - For someone who has a regular portfolio, what is your general advice going into 2026? 58:02 - Can you make the bull case for 2026? 01:00:29 - Break 01:00:38 - FInal thoughts 01:05:11 - Credits Subscribe to Prof G Markets on Spotify: https://links.profgmedia.com/markets-spotify Got a question for Prof G? Get answers on TikTok: https://links.profgmedia.com/tiktok Want more Prof G? Check out everything we're up to at: https://links.profgmedia.com/home #business #news #tech #financemotivation #stockmarket #profg #scottgalloway #profgmarkets #ai #earnings #stocks #inflation #investmentstrategies #investment #investing #gdp #podcast #recession #tariffs #ratecut #fed #trump #presidenttrump