Tom Lee, co-founder and Head of Research at Fundstrat, argues that any pullback in the S&P 500 should be bought, with corrections likely shallow because so much cash remains on the sidelines. Investors who exited earlier in the year never re-entered, creating constant dip-buying pressure.
He rejects the idea that U.S. equities are uniquely overvalued, noting that many European cyclicals—like German tech at 33x earnings—are more expensive, while U.S. tech outside the Magnificent 7 trades near 20x. With 21 of the world’s 25 largest companies based in the U.S., structural leadership remains intact.
Global central-bank easing and reduced tariff tensions support equities worldwide, allowing U.S., Europe, and China to rise together.
Tom reiterates his Bitcoin target of $200K–$250K this year, expecting new highs to trigger powerful retail and institutional demand.
He acknowledges warnings from major investors but sees no evidence of a recessionary crash; too few are invested for a meltdown.
He recalls Fundstrat’s calm approach during “Tariff Liberation Day,” emphasizing that conviction and discipline paid off.
