Tariffs Not a Threat to S&P Momentum, Says Fundstrat’s Tom Lee
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Fundstrat’s Tom Lee believes that lingering caution in the stock market could actually be setting the stage for another bullish breakout.
In a recent CNBC interview, Lee noted that despite a strong performance from the S&P 500, many institutional investors remain wary—largely due to unresolved trade concerns.
According to Lee, portfolio managers are reluctant to embrace the rally, fearing the economic impact of tariffs. Yet, he argues that these fears are overblown.
A 10% tariff on imports, he says, would only shave around 1% off GDP—a manageable drag, comparable to past oil price spikes that didn’t derail the economy.
Meanwhile, the broader setup paints a more optimistic picture. With short interest rising, cash parked on the sidelines, and market conditions steady, Lee sees potential for a sharp move higher. The real risk, he suggests, may be missing out while waiting for perfect clarity.
As skepticism persists, Lee thinks the market could be gearing up for a surprise surge—fueled, ironically, by those still sitting on the sidelines.
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