Fundstrat manager Tom Lee says last week’s stock market rally is “fake news” about the health of the bull market – and is urging investors not to read too much into the volatility.
Lee, a CNBC contributor, made it comments Monday’s “Power Lunch” after markets sold off on Friday before rebounding at the start of the week.
According to Lee:
“I think it’s a bit of a lie to think that the bull market is in trouble. I think the bull market is still in good shape.”
Lee identified three drivers of the jitters last week: concerns about AI sales following Broadcom’s guidelines; the growing wealth of technology companies, including Google ($80 billion), SpaceX ($75 billion), OpenAI (perhaps $100 billion), Anthropic ($75 billion), and Meta; and international conflicts.
He also talked about the theory that the SpaceX IPO, which is expected on June 12, could be at the top of the market. While Lee acknowledged that a “huge camp” of institutional clients has those sentiments, he called them “concerns about volatility,” saying that “it’s rare that a big IPO gets the upper hand.”
Lee also said that $7 trillion remains in cash on the sidelines and that IPO demand has been strong.
“I think the market will not only take this IPO well, but I think the market will do well in sending the IPO.”
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