Markets are too hot right now, says Greenwich Wealth Management's Janjigian

Market Overview - The current market is perceived as being somewhat overvalued, particularly in the technology sector, with a specific focus on AI-related stocks [1][2] - There is a distinction between the core business performance of companies like Nvidia and their stock valuations, which may not align [4] Company Analysis: Nvidia - Nvidia is compared to Cisco Systems in the 1990s, highlighting its past performance and current valuation concerns; while the business remains strong, the stock price is considered too high [3][5] - The company is expected to continue leading in the AI space, but caution is advised regarding stock purchases due to potential overvaluation [4][5] Market Trends - Recent trends show that companies with negative earnings per share (EPS) are outperforming those with positive EPS, particularly within the Russell 2000 index [7][8] - Many of the negative EPS stocks are emerging technology or biotechnology firms, which may not have significant revenue but could see stock price increases based on successful outcomes from FDA trials [8][9] Investment Strategy - Investors are advised to be cautious about their exposure to large-cap stocks like Nvidia, especially if they hold ETFs or mutual funds where these stocks are significant components [6] - It may be beneficial to include small-cap stocks in investment portfolios, particularly through small-cap indices like the IWM, as they have gained attention recently [10] Economic Indicators - A concerning market signal is the simultaneous increase in various asset classes (stocks, bonds, gold) while oil prices decline, suggesting potential underlying issues [11]