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CNBC Television
Russell 2000 will see a 40% rally by the end of the summer, says Fundstrat's Tom Lee
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03min
🇬🇧 English
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 the general election, and more
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 📈
- 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.
- Small-cap stocks are sensitive to political shifts, with recent rallies in sectors like Industrials and Financials based on expectations of a Republican victory.
- 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 📉
- Tom Lee expects inflation to fall significantly, citing a durables recession in housing and autos, urging for urgent Fed rate cuts to boost confidence.
- Energy sector faces challenges in the near term due to oil price pressures, with a cautious outlook on energy stocks until oil stabilizes.