Veteran investor Tom Lee says investors are better off remaining optimistic about the markets despite the recent correction in stocks and other risk assets.
In a new interview on CNBC, Fundstrat’s head of research says the correction in stocks – which sent the S&P 500 falling from over 6,000 to 5,832 – is likely an opportunity for investors to go long rather than remain cautious.
“In our view, this is another buying opportunity. 2024 has proven to be a year where the market was strong and missed many opportunities for sustained weakness. I know [December 18th’s] The pullback was really painful, but for us the fundamentals are intact and I think this is a good opportunity for investors.”
Lee points out that the Volatility Index (VIX), which measures the stock market’s expectation of volatility based on S&P 500 index options, rose sharply on December 18th. He says such a rapid rise has correlated with market bottoms in the past.
“The market is down.
Looking at the internals of the last ten days, [December 18th] looks like capitulation because not only did we have a day with 90% down, but also the VIX…
