Fundstrat's Tom Lee: Why the Bull Market Isn’t Over Yet | 2025 Market Outlook

About this video

• Video Title: Fundstrat's Tom Lee: Why the Bull Market Isn’t Over Yet | 2025 Market Outlook
• Channel: Fundstrat
• Speakers: Tom Lee
• Duration: 27:30

Overview

Tom Lee of Fundstrat discusses his outlook for the market in the next 12 months, arguing that the bull market is not over. He highlights several key drivers for this optimism, including strong corporate profits, healthy household balance sheets, the potential of AI, productivity gains in the financial sector, and the Federal Reserve's dovish stance. Lee also addresses market skepticism, the historical resilience of the stock market through various crises, and the long-term opportunities presented by AI and blockchain technology.

Key takeaways

• Bull Market Continuation: Despite skepticism, Lee believes the US is still in a bull market, driven by US leadership and strong economic fundamentals.
• AI and Blockchain as Growth Drivers: The adoption of AI is expected to generate significant spending and productivity gains, while blockchain technology is poised to revolutionize financial transactions and create new markets for digital assets.
• Resilience of the Market: The stock market has demonstrated remarkable resilience in the face of multiple "black swan" events over the past five years, suggesting underlying strength.
• Labor Shortage and Technology Spend: A structural labor shortage in the US is predicted to drive parabolic growth in technology spending, particularly in AI and robotics, as companies seek non-human labor solutions.
• Skepticism as a Bullish Indicator: The current widespread skepticism and bearish sentiment, even as markets reach new highs, is seen as a healthy sign that suggests further room for growth.
• Political Divide Impact: Lee suggests that political affiliation may be influencing market sentiment, with the stock market leaning Democratic and the bond market leaning Republican, creating a divergence in outlook.