The head of research and co-founder of financial services firm Fundstrat says that many people continue to have reservations about stocks despite positive signals in the market.
In a new interview on CNBC’s Closing Bell, Tom Lee says that there are still a number of people who are hesitant to engage with the equities market, regardless that the S&P is doing well and many investors are bullish.
“In our calls and Zooms with portfolio managers, many are still cautious because they see tariff risks ahead, and they don’t have tariff resolution in hand. They can’t get bullish. I think the feedback we get from a lot of folks is that they think stocks shouldn’t be rising.”
Lee says indicators hint at a bullish trajectory for the market.
“I would say given the amount of cash on the sidelines, the fact that short interest is going up, and we have a quiet week and markets are rallying, I think the risk is now of a substantial leg-up rally from here.”
He says that tariffs matter, but the higher rates will not have critical effects on the economy.
“Remember, before February, before Trump sort of talked about this, the base case for many was a 15% tariff. Let’s say that we’re going to end up at 10%. That’s 10% on 15%, which is imports, which is about a 1% GDP effect. That’s not that different from oil going from $40 to $80. We wouldn’t say $80 oil breaks the economy anymore, so I think tariffs – we have to adjust to it, but it’s not the thing that takes us to 4000 S&P anymore.”
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
