Fundstrat’s Tom Lee, known for his consistently bullish equity predictions, thinks certain categories of stocks could face a bear market later this year.
Lee says in a new CNBC interview that parts of the stock market look vulnerable due to “midterm seasonality,” petroleum shortages and a wave of upcoming initial public offerings (IPOs) that he says could cause a supply overhang.
But the Wall Street veteran does think the upcoming bear market will spare certain prominent sectors.
“I think there’s going to be a bear market in other stocks later this year, yes, but I think it’s going to spare the Mag-7 and software.
So it’s going to be names that either got lofty or are going to be affected by the fact that there is a lot of supply of new stock later this year, or the companies that are going to get hit by the shortage of petroleum products. So I think there are reasons that we could have headwinds later this year.”
Lee adds that semiconductor stocks “could become a bubble.”
“To me, they don’t seem like a bubble yet. When Nvidia’s trading at 19 times earnings, I think it’s still a good risk/reward, but I think that there are parts of that ecosystem that have become quite expensive.”
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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 assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
