The Wall Street strategist who nailed the stock market’s recent mega-rallies sees a 10%-15% jump in the coming months

Wall Road strategist Tom Lee stays optimistic in regards to the inventory market regardless of its current selloff on mounting considerations that the economic system is rolling over. After predicting the large surges in 2023 and 2024, he mentioned a giant rebound is “very potential” within the subsequent few months and identified that the majority of yearly inventory positive factors can come down to only 10 of the highest buying and selling days.

Fundstrat International Advisors cofounder Tom Lee has constructed a monitor report not too long ago of accurately predicting the inventory market, and he anticipates a rebound quickly after a brutal selloff.

US indexes have erased their post-election positive factors as President Donald Trump presses forward together with his aggressive tariff agenda, which has spooked customers and companies whereas sparking concerns the economy is slowing.

However on Wednesday, at the same time as ADP’s private-payroll report confirmed weak hiring, Lee mentioned he stays optimistic, telling CNBC that shares have already priced in loads of dangerous information after markets suffered a correction in sentiment and momentum.

“I believe it’s very potential that March, April, Might may truly be one in every of these big rally months the place we’re rallying 10-15%,” he mentioned.

His outlook carries further weight as he has demonstrated a knack for seeing massive surges, together with the S&P 500’s back-to-back positive factors of greater than 20% in 2023 and 2024.

Among the many forecasters surveyed by Bloomberg, Lee’s name in 2023 turned out to be the most accurate. And final 12 months, he mentioned the S&P 500 may finish 2024 above 5,500, then hiked his forecast to six,000. It will definitely completed at just under 5,900.

On Wednesday, he mentioned he believes now could be a time to purchase with markets unsettled and warned that lacking massive particular person buying and selling periods could be expensive.

For instance, the market’s 10 greatest days final 12 months added as much as 20 share factors for the S&P 500, Lee defined. However excluding these 10 days, the index was solely up 4%.

“You don’t get 20% years as a result of it’s good by the 12 months,” he added. “It’s simply the ten greatest days.”

Lee thinks one in every of this 12 months’s greatest days could possibly be across the nook. If progress begins to stall or the job market softens, then a “Trump put” or a “Fed put” could be in play, which means the president or the Federal Reserve takes motion to assist the economic system.

“So I believe that’s what’s going to be the constructive catalysts within the subsequent couple of weeks,” Lee mentioned, noting that shares usually backside out earlier than dangerous information peaks.

The Atlanta Fed’s GDPNow tracker reveals the primary quarter is at the moment on monitor for a 2.4% contraction, whereas the latest jobs data level to indicators federal layoffs and tariff fears are creeping in.