Not many on Wall Street were able to call the huge S&P 500 comeback this year after the index plummeted into its first bear market in a generation last year. But then there was Tom Lee. Back in December, the veteran analyst and cofounder of Fundstrat Global Advisors argued that the S&P 500 would jump more than 20% this year to 4,750—a price target 17% higher than Wall Street's median forecast. And in March, Lee doubled down on his bullish take, arguing stocks were set to soar due to falling inflation, a dovish Fed, and reasonable valuations after 2022’s dismal year. Since then, the S&P 500 has rallied nearly 10%, for an over 14% upswing year to date. It’s looking pretty good for Lee’s prognostication, and now he’s back with another big call.
Lee, who is generally known for his bullish forecasts and support of cryptocurrencies, says that stocks will continue their march higher. Despite more than a year of consistent recession predictions from Wall Street (probably amounting to the most widely predicted recession in history), he notes that the economy has remained resilient, with the unemployment rate hovering near pre-pandemic lows and GDP growth continuing in the first quarter.
