Fundstrat’s Tom Lee Tips Bullish Drive For Stocks
Highlights
- Fundstrat’s Tom Lee has backed an upward drive in the stock market.
- The Federal Reserve cutting interest rates will add to the surge.
- Crypto users expect a correlation with stocks to mark a rebound.
Tom Lee, the co-founder and Head of Research at Fundstrat has projected bullish sentiment in the stock market. In a May 14 appearance on CNBC’s Closing Bell, the financial analyst noted that it’s time to get bullish behind the stocks following short-term highs in the market.
"I think it's time to get bullish," says @fundstrat. "That's our bet that May ends up being a very strong month for stocks, even better than it's been already." pic.twitter.com/HHdta7MtVI
— CNBC's Closing Bell (@CNBCClosingBell) May 14, 2024
The upward momentum of stocks is recorded as NASDAQ is set for a record closing high amid a turn in sentiments. According to Lee, stocks have been consolidating in recent months with prices making a rebound from former lows. Generally, Q1 2024 saw upticks from many US stocks with several assets rallying to highs not recorded in months.
Tom Lee Backs Rate Cuts To Spur Drive
Like most market analysts, Lee opines that cooling inflation which leads to interest rate cuts can spark renewed inflows in the market. Several traditional investors have predicted the first cut to come in September although the Federal Reserve continues to leave rates unchanged.
“Once we get a decisive data point, potentially it’s tomorrow, I think that $6 trillion of cash comes off the sidelines and I think that stocks breaks out of this range. I mean that’s our bet that this month ends up being a very strong month for stocks even better than it is already.”
Lee added that the Feds are playing a waiting game with housing and auto insurance while the first signs of cooling are the April data which could trigger more gains this month.
Stocks Notch Uphill Climb
The last 24 hours have seen the stock market record gains wiping out previous losses due to market corrections. Coinbase trades at $203 and is up 1,77% today although weekly flows stand in the red zone. Meta, which also recorded a positive Q1 earning like Coinbase is also up 0.82%.
MicroStrategy (MSTR) has also seen significant upticks above 4% in the same timeframe. While the stock market marks a rise, many bulls analyze its inflow to crypto assets because of previous correlations.
Also Read: TON Outperforms Bitcoin By 118%: What’s Driving The Network?
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