Fundstrat’s head of research Tom Lee says that the US stock market is most likely about to benefit from a bullish setup despite its recent correction.
In a new interview with CNBC, Lee says in the face of tariffs and political uncertainty, markets still appear to be climbing a wall of worry, or the tendency for assets to ascend higher despite otherwise negative sentiment.
“What really stands out to us is that the market has alluded extended periods of weakness because investors are bearish at the highs at the time when there’s record cash on the sidelines. So to us, this is a market that is very skeptical of these new highs. That bearishness and the concerns about tariffs means there’s a wall of worry so I think this is actually a very positive setup for stocks.”
Regardless of recent volatility and the perceived riskiness, the seasoned investor says that growth stocks will continue to outperform this year and that the latest market correction will most likely be shallow and shortlived.
“Investors really want to own stocks that actually have structural advantages, and that’s best evidenced by revenue growth, margin expansion, earnings growth and reasonable prices so the reason growth stocks will still outperform is that in a period like this, if we have macro uncertainty, they’re going to be names with some visibility.
It’s not pleasant to own a growth stock today, but we know the lesson of 2025 is that these pullbacks have not been deep and investors have been buying these dips, so I don’t think today is any different. In fact, it’s no different than the DeepSeek panic, or the tariff-day panic, or the CPI (consumer price index) panic so I think this is going to be a buying opportunity.”
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