Tom Lee: Price to equity ratios aren't expensive if 10-year bond yield comes down
Tom Lee, Fundstrat Global Advisors co-founder, joins 'Squawk on the Street' to discuss why the market rally has been so hated, if markets are expensive and much more.
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7 hours ago
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Tom Lee Says V-Shaped Rally Among 'Most Hated' Ever As Market Nears All-Time Highs, Warns Of Possible 'Face-Ripper' Surge
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Tom Lee, co-founder and Head of Research at Fundstrat Global Advisors, predicts a substantial market rally despite widespread investor skepticism as the S&P 500, tracked by SPDR S&P 500 (NYSE:SPY), trades within 2% of all-time highs. What Happened: Lee wrote on X that 'This remains one of the 'most hated' V-shaped rallies and yet we are within 2% of all-time highs.' He cited short positioning, bear sentiment, and improving macro conditions as catalysts for a possible 'face-ripper rally.' The S&P 500, closed at 5,970.37 on Tuesday, up 0.58%, while the Nasdaq-100 gained 0.79% to 21,662.58. The benchmark index reached an all-time high of 6,152.87 in February. Trending: Start investing with eToro's CopyTrader — . Speaking on CNBC, Lee emphasized the disconnect between market performance and investor sentiment. 'You'd think that with the S&P doing well this week and a great May investors are bullish. They are not,' Lee said. 'In our calls and zooms with portfolio managers many are still cautious because they see tariff risks ahead.' Lee highlighted technical indicators supporting further upside. 'Given the amount of cash on the sidelines, the fact that short interest is going up and we have a quiet week and markets are rallying, I think the risk is now of a substantial leg up rally from here,' he stated. Why It Matters: Regarding tariff concerns, Lee downplayed their economic impact. He estimates a 10% tariff rate would create roughly a 1% GDP effect, comparing it to oil moving from $40 to $80. 'We wouldn't say $80 oil breaks the economy anymore,' Lee noted. The Fundstrat strategist expects the Federal Reserve to remain dovish through 2026 as housing prices decline and deliver deflationary pressure. Housing represented 75% of inflation increases since 2019, according to Lee's analysis. For sector positioning, Lee favors the Magnificent Seven technology stocks alongside financials, industrials, and small caps for the second half of 2025. He views the MAG 7 as 'the first to peak, the first to bottom' during recent market volatility. Lee's bullish outlook contrasts with mounting concerns from JPMorgan Chase Inc. CEO Jamie Dimon and others about potential bond market instability amid rising federal deficits and elevated long-term Treasury yields. Read Next: Nancy Pelosi Invested $5 Million In An AI Company Last Year — Here's How You Can Invest In Multiple Pre-IPO AI Startups With Just $1,000. Invest Where It Hurts — And Help Millions Heal: Invest in Cytonics and help disrupt a $390B Big Pharma stronghold. Image Via Shutterstock This article Tom Lee Says V-Shaped Rally Among 'Most Hated' Ever As Market Nears All-Time Highs, Warns Of Possible 'Face-Ripper' Surge originally appeared on
Yahoo
9 hours ago
- Yahoo
Tom Lee Says V-Shaped Rally Among 'Most Hated' Ever As Market Nears All-Time Highs, Warns Of Possible 'Face-Ripper' Surge
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Tom Lee, co-founder and Head of Research at Fundstrat Global Advisors, predicts a substantial market rally despite widespread investor skepticism as the S&P 500, tracked by SPDR S&P 500 (NYSE:SPY), trades within 2% of all-time highs. What Happened: Lee wrote on X that 'This remains one of the 'most hated' V-shaped rallies and yet we are within 2% of all-time highs.' He cited short positioning, bear sentiment, and improving macro conditions as catalysts for a possible 'face-ripper rally.' The S&P 500, closed at 5,970.37 on Tuesday, up 0.58%, while the Nasdaq-100 gained 0.79% to 21,662.58. The benchmark index reached an all-time high of 6,152.87 in February. Trending: Start investing with eToro's CopyTrader — . Speaking on CNBC, Lee emphasized the disconnect between market performance and investor sentiment. 'You'd think that with the S&P doing well this week and a great May investors are bullish. They are not,' Lee said. 'In our calls and zooms with portfolio managers many are still cautious because they see tariff risks ahead.' Lee highlighted technical indicators supporting further upside. 'Given the amount of cash on the sidelines, the fact that short interest is going up and we have a quiet week and markets are rallying, I think the risk is now of a substantial leg up rally from here,' he stated. Why It Matters: Regarding tariff concerns, Lee downplayed their economic impact. He estimates a 10% tariff rate would create roughly a 1% GDP effect, comparing it to oil moving from $40 to $80. 'We wouldn't say $80 oil breaks the economy anymore,' Lee noted. The Fundstrat strategist expects the Federal Reserve to remain dovish through 2026 as housing prices decline and deliver deflationary pressure. Housing represented 75% of inflation increases since 2019, according to Lee's analysis. For sector positioning, Lee favors the Magnificent Seven technology stocks alongside financials, industrials, and small caps for the second half of 2025. He views the MAG 7 as 'the first to peak, the first to bottom' during recent market volatility. Lee's bullish outlook contrasts with mounting concerns from JPMorgan Chase Inc. CEO Jamie Dimon and others about potential bond market instability amid rising federal deficits and elevated long-term Treasury yields. Read Next: Nancy Pelosi Invested $5 Million In An AI Company Last Year — Here's How You Can Invest In Multiple Pre-IPO AI Startups With Just $1,000. Invest Where It Hurts — And Help Millions Heal: Invest in Cytonics and help disrupt a $390B Big Pharma stronghold. Image Via Shutterstock This article Tom Lee Says V-Shaped Rally Among 'Most Hated' Ever As Market Nears All-Time Highs, Warns Of Possible 'Face-Ripper' Surge originally appeared on Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Yahoo
12 hours ago
- Yahoo
Jim Cramer Says to 'Buy Dover (DOV) Right Now'
We recently published a list of . In this article, we are going to take a look at where Dover Corporation (NYSE:DOV) stands against other stocks that Jim Cramer discusses. Inquiring about Dover Corporation (NYSE:DOV), a caller asked if Cramer thinks that the stock will ever hit $222. He replied: 'I look wrong right now on Dover for the club… but I think I'm going to be right. Why? Because I think that Tobin is very smart, the CEO and the stock should never have been thrown back, 19 times earnings. It even went down when steel tariffs went on. I say enough is enough. Buy Dover right now, tomorrow morning.' A modern industrial equipment assembly line in motion. Dover (NYSE:DOV) produces items like pumps, flow meters, refrigeration systems, printing and coding equipment, vehicle lifts, winches, and fluid dispensing tools. Additionally, the company provides software and services used in fuel handling, industrial processing, climate control, and product traceability across various industries. During an episode of Squawk on the Street in April, Cramer commented: 'Okay so here's a good example of the craziness of this market. Dover reports. Dover did what RTX did the other day. They actually said okay listen the tariffs are hurting us. Okay, here's how they're hurting us. Stock was immediately down seven bucks. Down 7. And I was like I own it for my charitable trust and I'm like meumughmhgm . . .and then well people figured out, wait a second, they told the truth! Now the stock's up nice.' READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
