S&P Bull: Fundstrat’s Tom Lee Says ‘Buy Stocks Even at New Highs’
The S&P 500 might be sitting at an all-time high, but Fundstrat Co-Founder Tom Lee says now is the time to buy stocks because they’re going higher. | Source: Shutterstock
By CCN: Fundstrat Co-Founder Thomas Lee has been covering the stock market for longer than he’s been analyzing bitcoin. And while crypto has been a tough nut to crack, he’s got a pretty good track record with stocks. Lee’s scorecard bodes well for his latest prediction that the S&P 500 index will reach 3,125 by year-end, which is higher than his previous forecast of 2,925.
So why so bullish? For one thing, stocks have already blown past Fundstrat’s previous target of 2,925 with the S&P currently hovering at 2,940. Also, while many analysts were anticipating a dismal first quarter for earnings, Fundstrat says results were “solid.” As a result, they’re also lifting their 2020 earnings estimates, which is a fly in the ointment to forecasters who suggest companies will miss their growth targets. Not to mention that paltry bond yields have investors hunting returns elsewhere, so it’s risk-on as evidenced not only by a bullish stock market but also in bitcoin.
— Sam Ro (@SamRo) May 3, 2019
Fundstrat’s been calling for a “powerful rally once incoming data could prove the resilience of the business cycle.” The stars have now aligned for the S&P 500. Tom Lee is quick to point out that the rally isn’t solely a function of the Fed’s more dovish position on interest rates.