Fundstrat’s Tom Lee says the S&P 500 has room to run.
In a new interview with CNBC, Lee predicts the leading stock index could surge to 6,800 in the next few months, fueled by rate cuts from the U.S. Federal Reserve.
“People always find quibbles with new highs, but we also know that for an institutional asset manager, it is not really excusable to be bearish when the market makes a new all-time high. So in other words, the institutions now have to start adding risk if we’re making all-time highs, because it’s a new bull market.”
Lee says the FOMO (fear of missing out) trade is a component of the current market environment.
“It’s merely a reorientation of perception, because the market’s only at 5% year-to-date, but we could be up 10%, so only half of the full-year gains have been realized, so if someone had fresh eyes on the market and knows the Fed’s being dovish and tariff risks are abating and multiples could expand, I think people could find many stocks to buy.”
The S&P 500 set a new all-time high last week and is trading at 6,263.26 at time of writing. The index is up more than 0.6% in the past day and more than 1% in the past 5 days.
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