Fundstrat’s Tom Lee says the stock market is headed for a “sudden market reversal” later this year, although he believes the current situation is improving.
Lee made it comments in an interview with CNBC following the Federal Reserve’s June 17 meeting, where the new Fed Chairman Kevin Warsh held his first press conference and dropped the central bank’s interest rate.
According to Lee:
“We still believe that at the end of this year there will be a sudden change in the market, which sounds like a bear market. But we don’t want to stop and bid at the top. I think things are still good for stocks.”
Lee said the S&P 500 sits at 7,500 and pointed to the SpaceX IPO as a sign that the risk appetite remains, noting that the company only has $90 billion.
He describes the three forces that he expects to test the markets at the end of the year: the review in line with the new five-point review process of the Fed, the additional shares of SpaceX, Anthropic and OpenAI IPOs, and the lack of traffic caused by the disruption of the Strait of Hormuz.
A fourth contributor, Mr Lee says, could be speculative capital drying up, as evidenced by high debt or cash flow on the sidelines.
Lee says he sees no signs that investors are bullish enough yet for a fourth culture to exist.
Follow us X, Facebook and Telegram
Don’t Miss Out – Sign up to receive email notifications straight to your inbox
Swimming Daily Hodl Mix
 
Disclaimer: The views expressed in Daily Hodl are not financial advice. Investors should do their due diligence before making any risky investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any assets including cryptocurrencies, nor is The Daily Hodl a financial advisor. Please note that The Daily Hodl participates in affiliate marketing.
Image Created: Midjourney
