Fundstrat’s Tom Lee: Stock Market Rally is “Most Hated” Yet Powerful
Fundstrat’s head of research, Tom Lee, is shedding light on the current state of the stock market, describing it as a “most hated” rally where skeptical investors are finding reasons for the market to fall. Despite this sentiment, Lee believes that the recent surge in the market, which brought the S&P 500 within 3% of its all-time high after a 17% increase from recent lows, is a powerful and underappreciated rally.
In a recent update, Lee points to historical patterns where doubt following a market dump has often led to major rallies. He recalls instances where fund managers labeled market upticks as bear market rallies, only to see the market hit new all-time highs shortly after.
Lee also notes the correlation between Bitcoin’s recent all-time high above $111,000 and the S&P’s movements, suggesting that both assets are tracking increased global liquidity. He sees Bitcoin’s peak as a leading indicator for the broader market.
Regarding Moody’s recent downgrade of US government debt from AAA to AA1, Lee remains optimistic, pointing out that similar downgrades by S&P in 2011 and Fitch in 2023 did not have lasting negative impacts on the market.
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