Investing veteran Tom Lee believes the US stock market will see greater heights next year propelled by a number of tailwinds.
In a new CNBC interview, the Fundstrat co-founder and managing partner says the current macroeconomic backdrop will sustain stock market rallies next year.
Lee also says he sees investors waiting on the wings to start piling into the S&P 500 in 2025.
“I think there [are] a lot more tailwinds building for markets in 2025 than have existed in 2024 mainly because now we’re not worrying about the Fed worrying about inflation and bringing a halt to the economy.
We have an election that’s behind us, and now we have a lot of cash on the sidelines and I think companies finally having more courage – what we call animal spirits – and a willingness to start to do mergers and other things like capital markets that help stocks next year.”
In October, Lee said that $6 trillion worth of capital that’s been sitting on the sidelines could fuel further stock market surges. He also noted that recession fears have kept many investors from diving into the equity market.
“It feels like investors are under-invested in stocks. I think there’s people who’ve dreaded 2024 thinking this is the year we slip into a recession, and instead, and we’re seeing it with earnings, companies have been really resilient.”
As of Friday’s close, the S&P 500 traded at 5,970 points.
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