Tom Lee: S & P 500 valuations are getting cheaper, Q3 earnings growth may be close to 30%

Tom Lee, chairman of BitMine, pointed out that although the current market sentiment tends to be conservative, the fundamentals of the S & P 500 index have changed positively, and its valuation level actually shows a downward trend. According to Fundstrat data, the third-quarter earnings growth of the S & P 500 components is expected to reach nearly 30%, while the forecast for earnings per share (EPS) in 2027 has been raised by more than 20% from the beginning of the year. Tom Lee analyzed that the increase in the S & P 500 index did not fully reflect the increase in earnings expectations, indicating that the market valuation multiple is continuing to shrink. He also believes that high oil prices may support the economy by promoting U.S. energy exports, while the excess performance of technology stocks and crypto asset markets reflects the market's increasing expectations for a fall in inflation.