A Record Number of S&P 500 Companies Issued Upbeat Guidance Before Earnings Season. Should You Buy an Index Fund Now?

A record 72 S&P 500 companies issued positive earnings guidance ahead of Q3 earnings season, with 44 from the technology sector. While this suggests strong earnings growth (29.6% year-over-year expected), the S&P 500 trades at 26x trailing earnings, above its 10-year average. At 19x forward earnings, valuations appear reasonable only if analyst estimates materialize. The author recommends buying index funds despite concentration risk in tech and historical precedent of volatility following similar records.