Tom Lee, Fundstrat’s Tom Lee, says the stocks could be headed to new highs in the next few months.
Lee, in a recent interview with CNBC says three factors could extend the bull market of S&P500 into next year.
Bull markets are supported with strong fundamentals. This is an example where the Fed has begun to lower rates. Not only did the economy survive extremely high rates of interest, it is also beginning the process of reducing rates. China’s economy has lagged behind, but now there are some stimuli and policies which look like bazookas to support that area. We have plenty of money on hand. “I think this is the formula to make stocks do well in the next 3 to 12 months. That’s why I believe we will be above 5,700 by year-end.”
At the time this article was written, S&P 500 traded above 5,751.
Lee says small-cap shares may also be about to break out. Small-cap stocks are companies with market caps ranging from $250 million up to $2 billion.
Small caps are within a few points of a record high. Mark Newton, head of our technical strategy department, believes that small cap stocks are in a positive trend. This has only just begun. It’s disappointing, but it is what it is. It’s especially frustrating because historically, China and small-cap stocks have been highly correlated. We are now seeing a rise in risk appetite.
It’s only a question of time. Investors have a lot to take in between now and next month’s election. This includes oil prices, and VIX (CBOE Volatility Index), which is high. It’s hard to believe that someone would say, “I want to buy risk today before early November.” Small caps have still good fundamentals, so I believe. The earnings growth rate is increasing. It’s just been very choppy.” The market has been pretty choppy. .”
Subscribe for email alerts to avoid missing a beat
___________________
Please follow us on X.
___________________
Images Can Be Found on Pixabay Creative Commons & Midjourney
As new information becomes available, this post Tom Lee says New All-Time Stock Market Highs are a ‘Part Of The Formula’ and Predicts Bull Market to Extend To 2025 could be updated.
This site is for entertainment only. Click here to read more
