March Primed To Be ‘Up Month’ for Equities Despite Geopolitical Instability, Says Fundstrat’s Tom Lee – Here’s Why

Fundstrat’s Tom Lee thinks March can be an “up month” for the inventory market regardless of the geopolitical instability unleashed by the US and Israel’s airstrikes towards Iran.

In a brand new interview with CNBC, Lee predicts that the worst of the war-related sell-off will occur this week.

“No person likes to see headlines and pictures of explosions and conflict, and so we all know threat premium jumps – that’s why the VIX jumps. But it surely’s probably not going to alter the basics of the US, so up to now, markets sort of dump into the buildup, after which they have a tendency to do higher as soon as the battle begins, and I feel that is going to be related.” 

The VIX is the ticker for the CBOE Volatility Index, which makes use of choices to gauge the market’s expectation of 30-day volatility for the S&P 500. It’s up greater than 5% on Monday at time of writing.

Lee says the Magnificent 7 shares and the software program and crypto sectors all displayed “early weak point” and are within the remaining phases of bottoming or have already bottomed.

“No less than within the case of the software program shares broadly, the whole complicated has fallen again to the place they had been final April. To me, that’s clearly an overreaction.

So I feel it is smart that you simply’d begin to see among the teams that bought hit onerous imply revert, together with the Magazine 7.” 

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