Fundstrat’s Tom Lee: US Equities in a Better Position Amid Optimism for 2026
Fundstrat’s head of research, Tom Lee, recently shared his insights on the current state of US equities in a new interview on CNBC Television. According to Lee, the stock market is in a much more favorable position now compared to the period before President Trump ignited a trade war with multiple nations.
Optimism for 2026
Lee emphasized the heightened optimism for 2026 and pointed out that US companies have been thriving even during challenging times. He believes that these factors are positive indicators that suggest a brighter outlook for the stock market.
“The tariff visibility is much better today than it was three months ago, and when we look at 2026, I think there are things to look forward to, such as deregulation, tax cuts, and a [Federal Reserve] that’s on hold now but probably doing more cuts in 2026.”
Resilience of Companies
Lee highlighted the resilience of companies in the face of economic uncertainties, stating that businesses have managed to produce earnings that exceeded expectations despite challenging conditions.
“From a company perspective, companies survived, I think, a black swan event. That waterfall of decline in equities and the near heart attack of the economy was an environment where companies produced earnings that beat expectations.”
Investor Sentiment and Institutional Exposure
Lee also discussed the shift in investor sentiment to neutral or positive, which could potentially benefit stocks in the second half of the year. He noted that institutional players are currently underexposed to the stock market, suggesting that pullbacks may be limited due to investors being underinvested.
“So I think the pullbacks are going to be pretty shallow because investors just are underinvested at the moment. And then when you look at sentiment, it’s barely turning neutral now, so if investors have been fighting this rally, as they become more optimistic or neutral, that’s upside for stocks.”
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