The head of research and co-founder of investment management firm Fundstrat says the firm has set a higher final target for the S&P 500.
Tom Lee say that six months after predicting that the stock market index will end at 7,000 in 2026, Fundstrat is now optimistic that the S&P 500 will move higher and reach the 8,000 mark.
“To come back a little bit in December, we said the S&P would be at 7,700, but we said the market would face a wall of skepticism and a new Fed. At the time we said the market could gain as much as 12%. That’s how we got to 7,700.”
Lee says the bull market is still in very good shape, despite the S&P being cheaper now than it was on January 1.
“This is a bit of a transition year, but in 2027 we could see gains in the stock market that we’ve never seen in our lifetimes, so I think you still want to keep an eye on the bigger picture.”
Lee says the company’s favorite sectors are technology, financials, industrials, small caps and energy/materials. As for the main drivers of profits and gross domestic product (GDP) by 2026, the executive says AI, energy, infrastructure, Wall Street moves to the blockchain and on-shoring.
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