Tom Lee: If Gold can rerate higher, then so can equities

• Macro data (jobs, retail sales) is confusing investors, with Friday's CPI report being crucial for inflation clarity.
• The S&P 500 has experienced unprecedented volatility, moving from overbought to oversold and back in a week, reflecting market uncertainty.
• AI is seen as both disruptive (impacting tech/software) and a driver of productivity, leading to cost savings for clients.
• Gold has become a 'singular monolithic trade' and is now a larger market than the S&P 500 (excluding the Magnificent 7), prompting investors to question stocks as a store of value.
• Despite the market being 'expensive' (as per David Einhorn), accelerating earnings growth, an ISM above 50, and a perceived dovish Fed are supportive of higher equity multiples.

Tom Lee discusses the current market's 'frazzled' state amidst confusing macro data, including a strong jobs report and upcoming CPI. He highlights AI's dual impact, both disruptive and productivity-enhancing, and notes gold's significant rise. Despite concerns about market expense, Lee believes accelerating earnings and a dovish Fed will lead to a higher re-rating for equities.