Fundstrat’s Tom Lee Predicts 20% Stock Market Crash After Massive Rally to New All-Time Highs – Here’s the Timeline
Market strategist Tom Lee believes the US inventory market will enter bear territory this yr, however not earlier than ascending to a brand new file degree.
In a brand new CNBC interview, Lee predicts that the S&P 500 will proceed to rally within the coming weeks after largely buying and selling in a slim vary thus far this yr.
However Lee warns that inventory market bears will possible come out in full power towards the tip of the yr.
“Our take is that we do count on that decline to occur when markets don’t reply to excellent news. So I believe we’re in a interval the place we had a bear market already in software program, the Magazine 7, and in crypto.
I believe that’s already taken out lots of hypothesis. So to me, I believe our guess could be that markets are literally going to elevate via the tip of the month, that we’re going to really be optimistic for March, and possibly hit 7,300. Later within the yr is once we assume a bear market would possibly present itself.”
oil, Lee explains why worth spikes are bullish for the inventory market.
“One, the US is an exporter of oil, so we internet profit as an financial system from increased oil [prices]. The second is that different international locations are importers. So the US not solely appears higher, however on a relative progress foundation, it ought to outperform, which suggests flows again into the US, and the third is, as we fear about international progress for all the explanations you described, when progress is scarce, folks purchase progress shares. The US inventory market is a progress index, so it’s popping out of the remainder of the world again into the US.
So I believe it’s a rotation story.”
At time of writing, the S&P 500 (SPX) is buying and selling at 6,672, whereas oil (WTI) is value $95.63 per barrel.
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