Stocks Poised to Continue Record Run According to Fundstrat's Tom Lee
• Solid earnings results - Earnings beat by 7% in Q1; consensus of $245 means potential for $10-$15 EPS upside this year
• Supportive Fed policy - Fed expected to cut rates later this year amid resilient economy
• Valuations not overly stretched - S&P 500 forward P/E of 20.7x only slightly above 5-year average of 19.0x
• Lack of investor risk-taking - $6 trillion in cash on sidelines, margin debt below Oct 2023 level
• Investors waiting to buy dips - Low leverage means investors can use pullbacks as buying opportunities