Fundstrat’s head of research, Tom Lee, is of the opinion that the S&P 500 will march to new record levels by the end of 2025 after putting aside aside in recent years.
In a new CNBC interview, Lee says that the S&P 500 is surrounded by the “most hated V-shaped” rally after the stock market index was recovered from a low point of 4.835 to a new highest point of 6,215 points.
According to Lee, many investors dumped their share of share during the fall of the market at the start of the market, to be left on the sidelines because shares organized a strong rebound.
“Many people liquidated at the lows, but we know that when the VIX (volatility index) is more than 60 and falls under 30, you have made a decisive low point.
And now visibility is better, rates are not as bad as we had expected, and the inflation impact is very muted and outside rates, [underlying] Inflation is much lower than the expectations of people. “
Looking ahead, Lee believes that there is no reason to be bearish on the S&P 500 after shocking five shocks in half a decade.
“I think there is more advantage of up to 6,600 [points] Because the P/E (price for the income) of the market can rise a lot. We already had five shocks. We had the COVID shock, the shock of the supply chain, the inflation shock, the fed-fast-her-in-history [shock] And then we had the tariff shock.
So five shocks in five years, and the income continued to grow. If this was a stock, we would say, “Look if you try to kill it five times and it still grew income, we would place a much higher multiple.”
From the end of Monday, the S&P 500 will be traded on 6,198 points.
https://www.youtube.com/watch?v=lo97WPI7_R0
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