Long-time bull Tom Lee admits he was too upbeat about stocks, saying they've suffered a deeper correction than he thought possible
- Market bull
Tom Leehas said he was too optimistic about stocks, saying the sell-off has been much worse than he expected.
- He said stock prices show that investors are expecting a recession, although he said he doesn't think growth will slow sharply.
Long-time market bull Tom Lee has said he was too upbeat about stocks, saying that the start of 2022 has been far worse than he expected.
Lee, a founder of boutique research firm
He said: "It looks like the market is really bent, especially economic expectations, towards recession. That was not something we expected."
However, Lee said he personally did not think a recession was coming and backed stocks to rebound in the second half.
The US benchmark S&P 500 stock index has fallen more than 10% from its January 3 record high, putting it into what's known on Wall Street as correction territory.
The tech-heavy Nasdaq 100 index has suffered even more, falling 20% from recent highs into a so-called bear market, before climbing out as stocks rallied Tuesday.
Lee has long argued the S&P 500 would rally to 5,100 by the end of the year, as inflation cools and growth continues. The index started the year at around 4,795, but has since slumped to 4,262.
He told CNBC Tuesday that stocks were priced as though the US is set to enter a recession. Some analysts have said the
But Lee said he doubts Fed monetary policy will hit growth too hard. He said the central bank may in fact carry out fewer interest rate hikes than investors expect, given the uncertainty and widespread economic pain caused by
Lee, who was formerly head of US equity strategy at JPMorgan, said he continued to like the look of energy stocks because ensuring oil supplies has become so important to countries over the last two years.
- Towards a Greener Footprint: Prioritising Carbon-Neutrality Makes Good Businesses Sense! Are Indian Firms Making the Transition?
- Netflix confirms an ad supported tier is coming to its streaming service by year end
- Accenture, Cognizant could see revenue growth but a strong US dollar could spoil the party
- Kharif sowing is off to a weak start with extended dry spells and floods
- Best ladder for home use in India