Market strategist Tom Lee is holding onto his stock market forecast despite recent market turbulence associated with the war in Iran.
Lee says in a recent interview with CNCB that his equity research firm, Fundstrat Global Advisors, is holding steady with its year-end S&P 500 target of 7,700.
“One, I think 7,700 was a conservative estimate to start, because markets have been steadily repricing on a P/E basis, and we’re only assuming modest P/E expansion this year to 7,700.
And as much as the war is creating obviously a huge short-term setback, and a lot of uncertainty, including effects on monetary policy, ultimately, wars are going to be good for the US economy and the US stock market, so I think as we get towards the end of the year, the market starts thinking less about the crisis element of this and more on the opportunity.”
Lee also notes that in the past eight major wars, the stock market bottomed early on in the conflict.
The S&P 500 is priced at 6,579.75 at time of writing and is down 2.12% in the past five days, 3.77% in the past month and 4.06% year-to-date.
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