Fundstrat managing accomplice Tom Lee says final week’s inventory market pullback is a “false narrative” concerning the well being of the bull market — and he’s urging traders to not learn an excessive amount of into the volatility.
Lee, a CNBC contributor, made the remarks Monday on “Energy Lunch” after markets offered off sharply Friday earlier than rebounding early within the week’s session.
In accordance with Lee:
“I feel it’s a false narrative to assume the bull market is in hassle. I feel the bull market remains to be intact and in superb form.”
Lee recognized three drivers of final week’s jitters: considerations concerning the AI commerce following Broadcom’s earnings steering; the sheer scale of fairness capital being raised by tech firms, together with Google ($80 billion), SpaceX ($75 billion), OpenAI (probably $100 billion), Anthropic ($75 billion), and Meta; and ongoing geopolitical tensions.
He additionally addressed the speculation that the SpaceX IPO, anticipated round June 12, may mark a market prime. Whereas Lee acknowledged that “a really massive camp” of institutional purchasers holds that view, he known as it “misplaced considerations,” arguing it’s “truly uncommon an enormous IPO marks a prime.”
Lee famous $7 trillion stays in money on the sidelines and that IPO demand has already been robust.
“I feel the market’s going to not solely take in this IPO rather well, however I feel the market’s going to do nicely submit IPO.”
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