Fundstrat’s Tom Lee is undeterred by last Friday’s market volatility.
In a new interview Joining CNBC, Lee says investors should remain “quite constructive” on U.S. stocks despite the recent pullback.
“JPMorgan, the largest and most powerful bank in the world, is investing $1.5 trillion in the US in things that are going to strengthen the advantages of the US. Critically important areas. And at a time when the US is dominating AI, and of course now we have these big tailwinds as blockchain is an initiative that Wall Street is building products on, so I think there are a lot of reasons for investors to remain optimistic.”
JPMorgan Chase announced on Monday, the Security and Resiliency Initiative, a 10-year, $1.5 trillion plan to boost U.S. industries critical to national economic security. The financial giant says the plan includes up to $10 billion in direct equity and venture capital investments in select U.S. companies.
Lee predicts that the S&P 500 could add 200 points “between today and mid-November.” He also still thinks the leading index will reach 7,000 by the end of the year.
The S&P 500 is trading at 6,654.85 at the time of writing. The index has risen more than 1.5% in the past day, but has fallen 1.35% in the past five days.
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