This video features an interview with Tom Lee, where he discusses his market outlook, the reasons behind his contrarian bullish stance over the past few years, and his predictions for the near future. He elaborates on super cycles, the impact of AI, the nuances of market bubbles, and the psychology of investing.
Tom Lee differentiates the current AI boom from the dot-com bubble by highlighting that AI is "gaining function," meaning its capabilities are evolving, whereas the internet during the dot-com era was primarily about spending and infrastructure build-out without the same level of functional advancement. He also points out that the cycle for GPUs in the AI space is much faster, with new cycles occurring every few months, compared to the once-in-a-decade capex deployments seen in telecom during the dot-com era.
Tom Lee recommends that investors who have been holding cash since 2022 should dollar-cost average (DCA) back into the market. He advises against putting 100% of the cash back in at once or waiting for a correction. Instead, he suggests taking 12 months to re-establish their position by investing a portion (e.g., 1/12th or 10%) each month. This approach allows them to benefit from compounding and take advantage of any dips that may occur.
