Fundstrat Head of Research Tom Lee believes the stock market has bottomed out and is on track to hit new record highs, maintaining a bold 7,300 target for the S&P 500 even as he warns of a looming macroeconomic “inflation shock.”
The Bottom Is In
Following a tumultuous period marked by geopolitical conflicts and volatile oil prices, Lee sees a clear runway for equities. Speaking to CNBC, he noted that markets demonstrated impressive resilience when headwinds were at their fiercest.
“I think the bottom is in… because last week was a period where the war was getting worse and oil was going up, but stocks weren’t going down,” Lee explained.
“So I think stocks are now on the process to go back to their all-time highs. And I think maybe get to that 7,300 that we were expecting this year.”
Surviving A ‘Rolling Bear Market’
Lee attributes this bullish outlook to the fact that much of the market has already taken its lumps. He highlighted that roughly 70% of the S&P 500 has recently endured a “rolling bear market”—with energy and financials …
This post was originally published here
