Investment veteran Tom Lee believes the US stock market will reach greater heights next year, driven by a number of tailwinds.
In a new CNBC interview, Fundstrat’s co-founder and managing partner says the current macroeconomic backdrop will support stock market rallies next year.
Lee also says he sees investors waiting for the wings to dive into the S&P 500 in 2025.
“I think there [are] There will be a lot more tailwinds for the markets in 2025 than in 2024, especially since we now no longer have to worry about the Fed worrying about inflation and bringing the economy to a standstill.
We’ve had an election, and now we’ve got a lot of money on the sidelines, and I think companies are finally having more courage – what we call ‘animal spirits’ – and are willing to do mergers and other things like capital markets that will help stocks next year.”
In October, Lee said $6 trillion in capital sitting on the sidelines could fuel further stock market gains. He also noted that fears of a recession have deterred many investors from entering the stock market.
“It feels like investors are investing too little in shares. I think there are people who fear 2024 and think this is the year we will enter a recession. Instead, and we see this in the earnings figures, companies have been very resilient.”
At Friday’s close, the S&P 500 was trading at 5,970.
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