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Russell 2000 will see a 40% rally by the end of the summer, says Fundstrat's Tom Lee
03min

Tom Lee, co-founder and head of research at Fundstrat Global Advisors, joins 'Squawk on the Street' to discuss his thoughts on small-cap stocks, which stocks should outperform if a Democrat wins th...see more

Title:
Market Outlook 📈
  1. Tom Lee predicts a 40% rally in the Russell 2000 by the end of the summer, driven by the probability of a Fed rate cut and short positioning in the market.
  2. Small-cap stocks are sensitive to political shifts, with recent rallies in sectors like Industrials and Financials based on expectations of a Republican victory.
  3. Tech stocks like Nvidia, Tesla, Microsoft, Apple, and Meta may not necessarily outperform due to a Democratic victory, with market movements showing signs of fading Trump trade.
Inflation and Fed Cuts 📉
  1. Tom Lee expects inflation to fall significantly, citing a durables recession in housing and autos, urging for urgent Fed rate cuts to boost confidence.
  2. Energy sector faces challenges in the near term due to oil price pressures, with a cautious outlook on energy stocks until oil stabilizes.
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