Fundstrat managing partner Tom Lee still thinks markets have room to run after explosive gains following Donald Trump’s victory in the US presidential election earlier this month.
Lee, who is also head of research at Fundstrat, says in a new one interview told CNBC that he thinks the “Trump trade is still intact,” even though the stock market has retreated in recent days.
“I think most major indices have retreated to what would technically be considered support by our technician Mark Newton. So the NASDAQ is on the support line. S&P rebounded 60% from its recent rally and small caps remained above their previous highs. These are all bullish support levels.”
Fundstrat’s managing partner speculates that markets are currently correcting as a result of Trump’s upcoming Department of Government Efficiency (DOGE), a proposed presidential advisory commission that will focus on cutting bureaucracy and spending in the public sector.
The DOGE, an acronymous reference to the popular meme asset Dogecoin (DOGE), will be led by billionaire Tesla CEO Elon Musk and former Republican presidential candidate Vivek Ramaswamy.
Lee says the committee could make cuts in sectors such as health care, manufacturing and defense.
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