More Tailwinds Building To Boost Stock Market Next Year, According to Fundstrat’s Tom Lee

Funding veteran Tom Lee believes the US inventory market will attain better heights subsequent 12 months, pushed by quite a lot of tailwinds.

In a brand new CNBC interview, Fundstrat’s co-founder and managing companion says the present macroeconomic backdrop will assist inventory market rallies subsequent 12 months.

Lee additionally says he sees buyers ready for the wings to dive into the S&P 500 in 2025.

“I believe there [are] There shall be much more tailwinds for the markets in 2025 than in 2024, particularly since we now not have to fret concerning the Fed worrying about inflation and bringing the financial system to a standstill.

We have had an election, and now we have got some huge cash on the sidelines, and I believe corporations are lastly having extra braveness – what we name ‘animal spirits’ – and are prepared to do mergers and different issues like capital markets that can assist shares subsequent 12 months.”

In October, Lee mentioned $6 trillion in capital sitting on the sidelines might gasoline additional inventory market beneficial properties. He additionally famous that fears of a recession have deterred many buyers from coming into the inventory market.

“It appears like buyers are investing too little in shares. I believe there are individuals who worry 2024 and suppose that is the 12 months we are going to enter a recession. As an alternative, and we see this within the earnings figures, corporations have been very resilient.”

At Friday’s shut, the S&P 500 was buying and selling at 5,970.

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