BitMine chairman Tom Lee said the market may look cautious in the near term, but the fundamentals behind the S&P 500 are improving and valuations have effectively come down. He cited Fundstrat estimates showing that third-quarter earnings growth for S&P 500 constituents could approach 30%, while 2027 earnings-per-share forecasts have been raised by more than 20% since the start of the year. Lee argued that the index has not risen as much as earnings expectations have, which means valuation multiples are actually declining rather than expanding. He also said higher oil prices could strengthen the U.S. economy through energy exports. In his view, the relative strength seen in technology stocks and crypto markets suggests investors are positioning for weaker inflation ahead.
According to ChainCatcher, BitMine chairman Tom Lee said that while market sentiment has turned cautious in the near term, the fundamentals of the S&P 500 are improving and the index's valuation has effectively declined.
Lee cited Fundstrat's estimate that third-quarter earnings growth for S&P 500 companies could come close to 30%. He also said 2027 earnings-per-share, or EPS, forecasts have been revised up by more than 20% from the beginning of the year.
He said the S&P 500's gain has lagged the upward revision in earnings expectations, indicating that valuation multiples are actually moving lower.
Lee also argued that high oil prices could reinforce the U.S. economy through American energy exports. At the same time, the outperformance of technology stocks and crypto markets suggests that investors are betting on softer inflation ahead.
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