Fundstrat's Tom Lee says he is not surprised by market's resilience after U.S. attack on Iran
The market's mild reaction to the United States' bombing of Iran over the weekend isn't all that unexpected, according to investor Tom Lee. The major averages were mostly steady on Monday, even after the United States entered Israel's war against Iran by striking three Iranian nuclear sites. Stocks were last trading around the flatline. Oil prices were also lower for part of the session but remained well below the highs reached overnight. "In some ways it's not a surprise," the co-founder and head of research at Fundstrat Global Advisors said on CNBC's " Squawk on the Street ." Lee cited longtime New York Stock Exchange floor trader Art Cashin's adage to "sell the buildup, buy the invasion." "I think today's an example of that," he continued. "Markets were kind of already nervous and anxious, and we've already saw derisking, and the [Cboe Volatility Index (VIX)] was already elevated. So I think in some ways, this is probably pretty typical." .SPX 1D mountain SPX intraday The VIX, known to many as Wall Street's Fear gauge, traded around 21, touching levels not seen in about a month. Lee said that Monday's moves actually strengthen the case for stocks to perform better in the latter half of the year. "At the start of this year, we would have said the U.S. bombing a nuclear facility is a 'Black Swan.' Oil would be $120, stocks should be down 10%," he added. "And then we have the event, and oil is not really surging, ... So I'd almost say that you put another stress test into the market, we've seen it pass it, and I think it means stocks should do pretty well into year's end."
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