Tom Lee Called the Market Bounce With Surgical Precision — These Sectors Have Gas in the Tank

• The Story: Tom Lee’s close market-bottom telephone and S&P 500 rally to 7,000 person positioned him arsenic a credible voice, and helium present warns of an “inflation shock” and imaginable steep drawdown aft 7,300 is reached, making vigor and materials sectors charismatic for investors up of anticipated volatility.

• In my view, Occidental Petroleum (OXY) offers vulnerability to lipid connected weakness. Berkshire Hathaway (BRK.B) is simply a large holder of OXY, validating the vigor concern thesis.

• The expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks. Get them present FREE.

You person to springiness recognition wherever recognition is due. With Fundstrat's apical strategist, Tom Lee, present looking similar a genius for his bold telephone of a marketplace bottommost (and bounce to follow) conscionable a fewer weeks ago, erstwhile it seemed similar the warfare successful Iran would origin the instrumentality of a carnivore market, I bash deliberation the antheral has earned much fans.

Of course, caller investors rapidly recognize however hard it tin beryllium to clip the marketplace successful the adjacent term. It's a determination that I deliberation is champion near to immoderate of the much seasoned traders retired determination oregon the algorithms. In immoderate case, Lee's telephone for a turnaround period and rally successful the S&P 500 to (and above) the 7,000 was eerily well-timed.

Some whitethorn disregard Tom Lee for being much of a perma-bull. But it is worthy noting that the antheral has called for periods of volatility and "treacherous" markets before, truthful the label, I think, whitethorn not beryllium fair.

READ: The expert who called NVIDIA successful 2010 just named his apical 10 AI stocks

In fact, Lee is opening up the doorway for a imaginable "inflation shock," and, with that, immoderate much volatility, arsenic helium enactment it successful a caller sitdown with CNBC. Maybe adjacent a steep bear-market drawdown aft 7,300 is watermark is hit.

I deliberation the large question is however Tom Lee's calls volition fare erstwhile we inevitably participate a carnivore market. Whether that's wrong the twelvemonth from present remains to beryllium seen. Either way, Lee has to beryllium 1 of the hottest names successful presumption of calls close now, and his firm's Funstrat ETFs, I think, are definite to payment arsenic his batting mean stays successful a bully spot.

What I find astir singular astir Tom Lee's commentary is that the marketplace has stayed comparatively resilient successful the look of aggregate achromatic swan events since 2020.

Whether we're talking astir the COVID situation and the grounds V-shaped recovery, the U.S.-Iran warfare and the interaction connected lipid prices, the warfare successful Ukraine, the Fed complaint hike scare from 2022, oregon the post-lockdown inflationary spike, the determination slope (remember the Silicon Valley Bank days?) crisis, oregon the crypto plunge, the marketplace has surely recovered a mode to rotation with the punches. And moving ahead, the punches are astir apt going to support coming. The marketplace mightiness yet instrumentality an adjacent bigger hit, but each clip successful the past six years, the S&P has recovered a mode to get disconnected the tarmac.