Speaker · Updated
Jordan Jackson: latest market views
J.P. Morgan Asset Management
Summary
Jordan Jackson is a Global Market Strategist on the J.P. Morgan Asset Management Global Market Insights Strategy Team, where he delivers market and economic commentary and contributes to publications such as the Guide to the Markets.
Chorus has 10 views from Jordan Jackson across 2 episodes on CNBC Closing Bell and Bloomberg Surveillance since November 3, 2026.
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Newest first. Every quote is checked against the episode's transcript.
AI infrastructure & data centers
Circular deal flow where chip sellers finance buyers is a risk to watch in AI.
Jackson says investors are grappling with the circularity of AI deal flow, which has been a risk to the market for some time. When a company selling shovels also finances the buyers of those shovels, the circularity becomes a concern. He says it is something to watch for, even as he sees demand for compute holding up.
“the circularity of the deal flow, and that has been a risk to the market for for quite some time. ...when you have a company that's selling shovels, also financing the guy and gal purchasing the shovels, that circularity becomes a little bit of a concern.”at 34:32
CNBC Closing Bell: NVIDIA CEO Exit, AI Trade Fallout and Tesla-SpaceX Deal Talk ·
AI infrastructure & data centers
Compute demand remains robust and the valuation sell-off in AI names is a buying opportunity.
Jackson says no company he has heard from has suggested that demand for compute is waning, so the backdrop for chip demand remains very robust. He argues that the sell-off is presenting a buying opportunity, since valuations across these groups of AI names have come down significantly. The risks investors worry about may already be in the price.
“not a single company that has suggested that demand for compute is waning... And I think this is actually presenting itself as a buying opportunity where we've seen valuations across these cohorts of names come down quite significantly.”at 34:52
CNBC Closing Bell: NVIDIA CEO Exit, AI Trade Fallout and Tesla-SpaceX Deal Talk ·
International equities offer diversified, uncorrelated returns versus concentrated US AI exposure.
US index concentration in AI-linked names (hyperscalers, semis, power, hardware, software) keeps growing, and more IPOs could add to concentration risk. Non-US markets such as Europe, Japan, Canada and Australia have value-heavy indices weighted to industrials and financials, which give a truly diversified, uncorrelated equity return stream. Jordan says this has proven a nice uncorrelated return stream relative to the US and helps balance AI exposure, though it is less exciting and somewhat safer.
“I would say that international is that area where you can look to find that truly diversified, uncorrelated equity return stream, and particularly markets like Europe, Japan, Canada, Australia, more of those real world economy type of value indices and benchmarks where you're getting industrials and financials”at 37:28
CNBC Closing Bell: NVIDIA CEO Exit, AI Trade Fallout and Tesla-SpaceX Deal Talk ·
AI stock selloff is overblown: demand is intact, only free cash flow is punished, so it's a buying opportunity.
Valuations have fallen about 25% from the start of the year, so much of the risk is priced in, visible in corporate credit spreads and CDS. The market is punishing free cash flow, not demand. Customer orders and backlogs show demand visibility out to 2028, and cloud revenues are up over 50% across the hyperscalers. The fundamentals look robust and the selloff looks like a crisis of confidence and a fading euphoria around a trade that did well for 3.5 to 4 years. He sees the consolidation as healthy and a better entry point.
“The markets are pricing in some of this weakness, but they're punishing free cash flow, not demand. When we look at customer orders, when we look at backlogs, we've got this demand visibility, I would say, out to 2028.”at 2:48
AI infrastructure & data centers
Circular financing between AI suppliers and their buyers is a concern, but the demand story is much broader.
Concern is warranted when the company selling the shovels also finances the buyers of the shovels, so the circularity is somewhat a worry. But the big AI players are finding other demand from neoclouds and new entrants, so AI demand is not just a circular story. He thinks the circularity concern is much broader than that and somewhat overblown.
“you do get a little bit concerned when the company that's selling the shovels is financing the buyers of the shovels. ... it's much broader than that, and some of that's a little bit overblown.”at 4:50
AI company IPO with a junk rating would face 300-400bp higher borrowing costs, adding financing stress.
If a new AI player comes to market with a junk rating rather than investment grade, it would have to borrow at roughly 300 to 400 basis points more. He says that will certainly put some stress on the financing of the buildout. The financing side is becoming more interesting than the demand debate, and he will watch October annualized revenue to see how fast monetization is happening.
“if we see this IPO come to market... and they've got a junk rating, now they've gotta borrow at three to 400 basis points more than what they would have if they would have come to market as an investment grade company. And that's certainly gonna put some stress.”at 5:39
Expects the Fed to deliver one or two more rate hikes, depending on inflation.
Yields have come off a bit and markets are doing some of the Fed's work, but not enough to justify another one or two hikes on their own. He agrees broadly with markets pricing a more than 50% chance of a hike in March. The oil spike in April and May will create base effects that help the Fed's year-over-year inflation run rate from the second quarter. The open question is how patient the Fed will be.
“I think we're probably looking at one or two more rate hikes coming from the Fed. It'll ultimately depend on what happens with inflation.”at 6:39
Health care is a defensive diversifier to the AI trade despite its expensive valuation.
Health care has played defense against the tech trade and has proven to be the zig to AI's zag. The sector is expensive, which they acknowledge. Earnings are also strong in materials, industrials, and financials excluding Berkshire, which supports the more cyclical parts of the economy.
“health care has been able to play a lot of defense relative to the [tech] trade... it does... Has proven to be that zig on the AI zag.”at 7:19
No recession expected next year; strong cyclical earnings backdrop supports markets.
Nobody at JPMorgan AM is calling for a recession next year. Earnings in materials, industrials and financials ex-Berkshire are coming in very strong, which supports the more cyclical parts of the economy. That backdrop provides a good setup for the market and corporate earnings.
“Nobody, including ourselves, are calling for a recession next year. And so, you know, that provides a good backdrop for a good backdrop for the market and corporate earnings.”at 7:55
Lower-income consumers are squeezed by negative real wages; upper-income households drive spending.
Wage growth has been below inflation for seven consecutive months, so real wages are negative and weigh on consumers. Consumption growth has been driven by upper-income households, not everyday consumers. Strong market returns for four consecutive years sustain the wealth effect, and retirees with bonds are getting income, so the upper-income consumer stays in the driver's seat. He is wary of staples and lower-income discretionary names.
“wage growth is below that of inflation... real wage growth has been negative... it has not been the everyday consumer that is driving consumption growth. It has been the upper income consumer.”at 8:44
Shows
- CNBC Closing Bell · 1 episode
- Bloomberg Surveillance · 1 episode
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