S&P 500 Could Go As High as 6,600 This Year After Shrugging Off ‘Five Shocks in Five Years,’ According to Fundstrat’s Tom Lee
Fundstrat’s head of analysis, Tom Lee, believes that the S&P 500 will march to new file ranges by the top of 2025 after brushing apart a number of shocks over the previous few years.
In a brand new CNBC interview, Lee says the S&P 500 is within the midst of the “most hated V-shaped” rally after the inventory market index recovered from a 2025 low of 4,835 to a brand new all-time excessive of 6,215 factors.
In response to Lee, many traders dumped their inventory holdings in the course of the market’s early-year decline, solely to be left on the sidelines as equities staged a robust rebound.
“A variety of people liquidated on the lows, however we all know that every time the VIX (volatility index) is above 60 and falls beneath 30, you’ve made a decisive low.
And now visibility is healthier, tariffs aren’t as unhealthy as we anticipated, and the inflation impression has been very muted, and outdoors of tariffs, [underlying] inflation is way decrease than individuals anticipated.”
Trying forward, Lee believes that there’s no purpose to be bearish on the S&P 500 after doing away with 5 shocks in half a decade.
“I feel there’s extra upside to six,600 [points] as a result of the P/E (value to earnings) of the market can go up so much. We already had 5 shocks. We had the Covid shock, the supply-chain shock, the inflation shock, the Fed-fastest-hikes-in-history [shock] after which we had the tariff shock.
So 5 shocks in 5 years, and earnings saved rising. If this was a inventory, we’d say, ‘Look in the event you attempt to kill it 5 instances and it nonetheless grew earnings, we might put a a lot larger a number of.”
As of Monday’s shut, the S&P 500 is buying and selling at 6,198 factors.
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