Tom Lee, chairman of Bitmien and co-founder of Fundstrat, said he still expects markets to remain strong through the end of the year despite recent volatility. Speaking on CNBC's Squawk Box, Lee discussed the coming week's trading focus, the U.S. midterm election cycle, and the recent attack on Binance. He pointed to several signals that, in his view, suggest markets may be nearing a bottom. Those include gains in the Invesco S&P 500 Equal Weight ETF (RSP) while broader indexes declined, a pullback in Treasury yields and oil prices, extremely defensive fund manager positioning, and cautious market sentiment. Lee also said the crypto market showed notable resilience after what he described as the largest hack in Binance's history. He added that the U.S. midterm election cycle has historically aligned with equity markets approaching a bottom, while current valuations are not expensive and fundamentals remain strong. Based on those factors, Lee said the odds still lean toward an upward move in markets.
Tom Lee, chairman of Bitmien and co-founder of Fundstrat, said he still expects markets to stay strong through the end of the year despite recent volatility.
In an interview with CNBC's Squawk Box, Lee discussed the coming week's trading focus, the U.S. midterm election cycle, and the recent attack on Binance. He said several indicators suggest markets may be getting close to a bottom.
Signals Lee says point to a market bottom
Among them, Lee highlighted a rise in the Invesco S&P 500 Equal Weight ETF (RSP) even as broader indexes moved lower, which he said shows improving market breadth.
He also cited falling U.S. Treasury yields and lower oil prices, along with fund managers holding extremely defensive positions and investors remaining cautious.
Crypto resilience also factored into his view
Lee said the crypto market had shown resilience after what he described as the largest hack in Binance's history. He included that performance among the signs supporting his outlook.
He also said the U.S. midterm election cycle suggests stocks are nearing a bottom. In his view, valuations are not expensive at current levels, and fundamentals remain strong. On that basis, Lee said the probabilities still favor an upward move.
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