‘It’s not a month to be a hero,’ warns stock-market strategist Tom Lee, after Dow logs worst day of 2021

1 week ago 8
PR Distribution

July has fixed investors immoderate fireworks. The Dow Jones Industrial Average DJIA, -2.09% conscionable enactment successful its worst time since precocious October connected Monday. But for those hoping this mightiness beryllium a cleanable accidental for a spot of bargain hunting, Thomas Lee, laminitis of Fundstrat Global Advisors, has a connection of advice:

‘I deliberation July wide is conscionable a period of chop, and 1 wherever nary 1 should truly effort to beryllium a hero.’

— Thomas Lee, laminitis Fundstrat Global Advisors

That is what the strategist told CNBC during a Monday interview, pursuing a rout of the Dow, S&P 500 scale SPX, -1.59% and the Nasdaq Composite COMP, -1.06% that had immoderate investors wondering whether the diminution was a selloff that rejuvenates the market’s carnal spirits oregon a harbinger of things to come, arsenic investors fret astir the dispersed of COVID-19’s delta variant and the anticipation that the pandemic could complicate the planetary economical recovery.

Lee told the concern web that COVID cases roseate past July and he’s expecting a akin signifier to unfold this year, adjacent if it is simply a much transmissible COVID variant that is unsettling bullish sentiment. He acknowledges, however, that the marketplace is being buffeted by uncertainty and that this period whitethorn beryllium 1 wherever investors should debar taking immoderate further large wagers.

Check out: Bond rally puts a 1% 10-year Treasury output backmost successful sight

“I conscionable deliberation that Julys, astatine slightest successful my 30 years of doing research, person ne'er been large months for radical to truly marque large profits,” helium said.

“For the adjacent mates weeks, I deliberation it’s tough,” helium said.

‘I think, again, the connection that I would person [for investors] is [that] it’s not a period to beryllium a hero.’

Lee warned investors backmost successful precocious June that erstwhile markets are beardown successful the archetypal fractional of a year, July tends to beryllium choppy.

That said, Lee is inactive bullish connected equities successful the longer word and maintains his 4,600 year-end people for the S&P 500. “I deliberation that stocks are inactive going to person a double-digit 2nd half,” helium told CNBC Monday.

He said that investors “shouldn’t extrapolate that we’ve mislaid the warfare against COVID.”

To beryllium sure, investors are besides disquieted astir rising tensions betwixt the U.S. and China and the anticipation that the marketplace is apt to spot highest earnings, and economical maturation could peter out, mounting the signifier up for a lackluster 2022.

Read Entire Article