Tom Lee: Expects future inflation data to trend lower, the crypto bull market and stock market highs are already pricing in future accommodative financial conditions.

October 5th, Tom Lee said in an interview with CNBC:

"I think before last week's jobs report came out, the market had been trading according to the 'most hawkish Fed' scenario, that is, expecting three rate hikes, including a 75% probability of a hike in October. But in the end, this jobs report was on the soft side. In two weeks we will get the September inflation report.

In our view, we believe some one-off factors are fading, so I think inflation data will be on the soft side over the next six months, which could not only allow the Fed to step back somewhat from its hawkish stance, but I also think it will allow bond yields to truly normalize, because inflation uncertainty is beginning to ease.

And I think there are a lot of clues, because tech stocks hitting new highs and crypto performing so well are not possible under tightening monetary conditions. So I think they are pricing in easier financial conditions ahead."