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Markets bouncing back after Friday's drop during his now-tomely, had a research at funstruck, global advisors, and funstruck capital CIO. time just summarizing What you thought saw this morning? I don't see a whole lot. that has shaken your confidence that the markets headed up, you still see 7,000 on the S&P by year end, you do point out. It's not cheap, 36% since the April.

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Tom Lee

Yeah, in fact, I think JP Morgan's announcement today really ties into why investors should stay pretty constructive on the US, I mean JP Morgan the biggest and one of the most powerful bankings in the world is investing a $5.00 into the US into things they're gonna strengthen US advantages. You know, critically important areas. And at a time when the U.S. is dominating AI, and of course now we have the big tailwind as blockchain is an initiative that Wall Street is building products on. So I think there's a lot of reasons for investors to stay optimistic. And I know there's a lot of talk about bubbles, but I think the thing I would just continue to point out is Nvidia trades at around 27 times forward earnings. It's still on a PE basis, cheaper than Walmart and Costco, which traded around 47 and 34 times forward earnings.

Yeah, we've got you've got positive.

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Tom Lee

Reasons to think earnings are going to be well in a time when interest rates are coming down. So that's just like an elixir for stocks that is very powerful.

Tom Lee

I think the sell off Friday is giving us a bit of a gift because that surge in the VIX 32% rise is the 39th highest ever one day surge. and the one month median return is almost 3% of the 38 other instances. So I think the S&P could add 200 points between today and mid November.

Still good or not overly positive in terms of sentiment right now so that's not late cycle according to you. at this point and still a hated rally $7 trillion on the sidelines.

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Tom Lee

I think conviction is a measure of whether or not the market is pricing in too much good news. I think with Friday's sell-off, I saw many people calling the top of the markets or declaring that the bubble is bursting, or that this is the reason to be buying gold. And if investors are that quick to call a top just on a 2 to 2.7% decline, I just think a lot of good news isn't really priced in. I think there's still a lot of reluctant investors on the sidelines.

It's found a kind of everything's about. You found a reason gold's up and it's because of crypto. Not directly because of crypto, but you think the incremental buyer in gold are there's gold-based stablecoins and people need to buy gold to back the stablecoins and that you think that's enough to be up ninety two dollars all the way up to a new high.

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Tom Lee

Well, there isn't an interesting correlation we found, which is when I look at Tether's supply of dollars outstanding, it really started to rise about three months ago and that corresponded with it with gold essentially going up every day. I'm not positive this, but I think stablecoins, including tether, maybe one of the largest buyers of gold today.