According to CoinMeta, strategists at Morgan Stanley stated that since early summer, valuations in the U.S. stock market have fallen significantly. Against the backdrop of still strong earnings growth, the investment attractiveness of certain market sectors is increasing. The team led by Michael Wilson pointed out that this round of valuation adjustments has created a “better investment environment” for industries that are related to the economic cycle and whose fundamental prospects remain robust. Among them, the capital goods sector stands out, with its earnings expectations being among the highest among all industries. Wilson stated in a report: “After recent valuation downgrades, some heavy asset sectors have begun to appear more attractive.” Since mid-August, the upward trend in the U.S. stock market has slowed down. Rising bond yields have offset the boost brought about by the strong earnings season, but the market expects earnings to remain strong. Bloomberg Intelligence data shows that analysts expect earnings of S&P 500 constituents to grow by 25% year-on-year in the third quarter.