‘Extremely High’ Odds of V-Shaped Recovery for Stock Market, According to Fundstrat’s Tom Lee

The pinnacle of analysis of market intelligence agency Fundstrat says that the percentages of a V-shaped restoration for the inventory market in April are overwhelmingly excessive.

In a brand new interview with CNBC Tv, Tom Lee says that primarily based on historic patterns, the inventory market might mount a restoration in early April.

“The spike within the VIX (volatility index) or the collapse in investor sentiment or shopper confidence, that each one occurred round February 2018, so actually that coincided with the primary low that was made in 2018, and the market started to stage its restoration…

However as we begin to consider the second half of this 12 months, to start with, we’ve already had the collapse in sentiment. We’ve seen $850 billion of money raised over the previous 12 months in cash market balances, after which within the second half, we have been searching for tax reform, which actually propelled shares in 2017.”

In keeping with Lee, a lot of the panic within the inventory market has already taken place this 12 months, main him to imagine that shares ought to begin regaining their bullish momentum this week.

“So I feel that the percentages of a V-shaped restoration in shares that come after April 2nd is simply extraordinarily excessive, as a result of we’ve already sequenced a number of the panic that individuals noticed in 2018. I feel it’s already going down.”

A V-shaped rally is a technical sample indicating an abrupt bullish reversal and a pointy surge out there.

Earlier this month, each the inventory and crypto markets took a tough hit after President Donald Trump introduced tariffs and refused to rule out an upcoming financial recession.

Comply with us on X, Facebook and Telegram

Do not Miss a Beat – Subscribe to get e mail alerts delivered on to your inbox

Test Value Motion

Surf The Every day Hodl Combine

Generated Picture: Midjourney