Part 6/11:

This narrative underscores a critical point: stock investors might be reacting emotionally rather than rationally. Even though the market's fundamentals, including corporate earnings and the Federal Reserve’s pivot from hiking to cutting rates, support continued upside, many remain cautious. This is despite evidence from credit markets, which signal confidence, and fundamentals, which are conducive to further gains.

Earnings, Federal Reserve Policy, and Structural Drivers

Tom Lee highlights several fundamental reasons supporting a continued bull market:

• Earnings Growth: U.S. corporate earnings are expanding at healthy rates, justifying higher valuations.

• Federal Reserve Pivot: The shift from rate hikes to cuts removes headwinds that previously hampered markets.