A top Wall Street strategist who predicted two of the last major stock surges says he believes another market boom is possible over the next several months despite recent sell-offs and mounting concerns that the U.S. economy is slowing. Tom Lee, co-founder of Fundstrat Global Advisors, says he foresees a possible substantial rally in the coming months, emphasizing that the majority of annual stock gains historically occur during just 10 key trading days.
“I think it’s very possible that March, April, May could actually be one of these huge rally months where we’re rallying 10-15 percent,” Lee said during a recent media interview. The investment strategist contends that the market has already priced in a lot of negative indicators cushioning any correction.
Lee’s predictions hold particular significance after his correct forecast of the S&P 500‘s consecutive gains exceeding 20 percent over the past two years. In 2023, Lee’s forecast was the most accurate among those surveyed by Bloomberg. His projection for the S&P 500 to conclude 2024 above 5,500 was later adjusted to 6,000, with the index closing just below 5,900.
He cautioned that missing key trading days could be detrimental, as the 10 best days in the previous year collectively added 20 percentage points to the S&P 500, contrasting with a mere 4 percent gain without them. Lee believes significant trading days may soon occur, depending on economic growth and employment data. Additionally, the investment strategist says a potential “Trump put” or “Fed put” could also arise if the economy falters, with possible intervention by the President or Federal Reserve to bolster the economy.
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