Fundstrat’s Tom Lee says the S&P 500 has room to run.
In a new interview with CNBC, Lee predicts the leading stock index could surge to 6,800 in the next few months, fueled by rate cuts from the U.S. Federal Reserve.
-->“People always find quibbles with new highs, but we also know that for an institutional asset manager, it is not really excusable to be bearish when the market makes a new all-time high. So in other words, the institutions now have to start adding risk if we’re making all-time highs, because it’s a new bull market.”
Lee says the FOMO (fear of missing out) trade is a component of the current market environment.
“It’s merely a reorientation of perception, because the market’s only at 5 year-to-date, but we could be up 10, so only half of the full-year gains have been realized, so if someone had fresh eyes on the market and knows the Fed’s being dovish and tariff risks are abating and multiples could expand, I think people could find many stocks to buy.”
The S&P 500 set a new all-time high last week and is trading at 6,263.26 at time of writing. The index is up more than 0.6 in the past day and more than 1 in the past 5 days.
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