Market volatility worries? It is not heading toward a bear market! Google and Amazon cost increases? Focus on growing earnings | Jang Jae-cheol, CEO of Pinnacle Economic Research Institute

Summary

Jang Jae-cheol, CEO of Pinnacle Economic Research Institute, argues that the recent market selloff reflects valuation and AI capex concerns rather than the start of a bear market. He sees near-term volatility continuing, recommends rebalancing and defensive/diversified allocations, and remains constructive on the AI industry and Alphabet. He also expects sticky inflation to bring stronger rates and a stronger dollar later in the year.

• Market volatility is elevated but not at crisis or bear-market levels.
• AI capex and profitability concerns are the main near-term pressure on technology stocks.
• The guest recommends rebalancing, a 60/40 stock/bond mix, and avoiding aggressive dip-buying in high-beta tech.
• Alphabet is favored among AI platforms because earnings are improving despite higher capex.
• Long-term AI infrastructure demand is expected to support Nvidia, Samsung Electronics, and SK hynix.
• Defensive domestic consumer staples may be a temporary shelter during the volatile period.
• Second-half macro risks include sticky inflation, higher rates, a stronger dollar, and geopolitical oil risk.