Tom Lee, Fundstrat Global Advisors managing partner and head of research, joins ‘Squawk Box’ to discuss the latest market trends, what to make of the latest market sell-off, impact on the Fed’s interest rate decision, and more.
date 2024-08-05 11:56:18
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The Market Sell-Off Will End Up Looking Like a Growth Scare, Says Fundstrat’s Tom Lee
Tom Lee, managing partner and head of research at Fundstrat, shared his insights on the recent market sell-off during a recent interview. Lee believes that the current market volatility is not a sign of a major selloff, but rather a sharp and scary spike that will eventually reverse. He notes that the VIX, a measure of market volatility, has spiked but is likely to peak soon, indicating a potential rebound.
Lee attributes the market sell-off to the surprise interest rate hike by the Bank of Japan, which has had a knock-on effect on global markets. He believes that the US economy is still in good shape, with low interest rates and a strong consumer sector. Lee also highlights the importance of the VIX, stating that when it peaks and starts to decline, market recoveries can be just as quick.
Lee mentions that the recent jobs report was disappointing, but thinks that it was an anomaly and that the trend remains positive. He also discusses the potential for a growth scare, citing the decline in interest rates and the consumer’s ability to weather the storm.
In terms of support levels, Lee notes that the S&P 500 has broken below 5390, which could be an important level to watch. He also mentions that mortgage rates are falling, which could support the consumer sector.
Lee concludes by stating that there will be opportunities to "catch the falling knife" in the market, but notes that it’s essential to wait for the right moment to do so. He believes that the market will eventually recover, with a potential reprieve coming this week or in October.
