Fundstrat's Tom Lee: November Rally Could Push S&P Toward 7,500

About this video

• Video Title: Fundstrat's Tom Lee: November Rally Could Push S&P Toward 7,500
• Channel: Fundstrat
• Speakers: Tom Lee
• Duration: 00:08:35

Overview

In this video, Tom Lee of Fundstrat Global Advisors discusses his market outlook, focusing on the potential for a November rally and his S&P 500 price targets. He touches upon factors influencing the market, such as inflation, economic growth concerns, corporate profits, and sentiment, and also briefly comments on the crypto market.

Key takeaways

• Bullish November Outlook: Lee anticipates a strong rally in November, projecting a potential increase of 200-250 points for the S&P 500. He notes that November has historically been a strong month for the market, especially following a period of consistent gains.
• Shifting Market Focus: The market appears to be moving past inflation concerns and is increasingly focused on downside risks to economic growth.
• Improving Inflation Picture: Lee suggests that inflation may be falling faster than expected, with shelter costs showing signs of decline and a significant percentage of CPI components deflating.
• Corporate Profitability: Despite potential headwinds like tariffs, companies are demonstrating expanding profits and increasing profit margins, possibly due to productivity gains driven by AI.
• Skepticism Despite Gains: Investor sentiment remains largely bearish, with many fund managers underperforming their benchmarks, indicating a potential for a year-end performance chase.
• Crypto Market Fundamentals: While acknowledging recent volatility, Lee believes that strong fundamentals in cryptocurrencies, such as increasing stablecoin volumes and application revenues, suggest a potential for future price appreciation.