Longtime Equities Bull Tom Lee Breaks Routine and Predicts Bear Market Later This Year – But Only for Certain Sectors

Fundstrat’s Tom Lee, identified for his persistently bullish fairness predictions, thinks sure classes of shares might face a bear market later this 12 months.

Lee says in a brand new CNBC interview that elements of the inventory market look weak resulting from “midterm seasonality,” petroleum shortages and a wave of upcoming preliminary public choices (IPOs) that he says might trigger a provide overhang.

However the Wall Road veteran does assume the upcoming bear market will spare sure outstanding sectors.

“I feel there’s going to be a bear market in different shares later this 12 months, sure, however I feel it’s going to spare the Magazine-7 and software program.

So it’s going to be names that both received lofty or are going to be affected by the actual fact that there’s a lot of provide of recent inventory later this 12 months, or the businesses which can be going to get hit by the scarcity of petroleum merchandise. So I feel there are causes that we might have headwinds later this 12 months.”

Lee provides that semiconductor shares “might grow to be a bubble.”

“To me, they don’t appear to be a bubble but. When Nvidia’s buying and selling at 19 instances earnings, I feel it’s nonetheless a very good danger/reward, however I feel that there are elements of that ecosystem which have grow to be fairly costly.”

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