Co-founder Fundstrat Global. Analysis not opinions. Data science speaks louder than gurus. Research analyst since 1993 “Tom Lee“ Wall Street strategist believes that in the fourth quarter of the year 2018 the highest sell-off in the equities in the market of U.S. Financial was recorded but in coming mid-year 2019 can even give larger gains in the financial market.
Morning Tom! For Q4, earnings growth for the S&P 500 is expected to be 11.4% which compares to around 25% growth reported in each of the previous three quarters. If Q4 comes in in-line this would be the fifth straight quarter of double digits earnings growth.
— Michael Underhill (@M_D_Underhill) January 11, 2019
In an interview with CNBC, Tom lee reported that U.S. stocks are well on the way for double-digit increases in 2019 and that they might go as high as 17% this year. “The buy the dip, which people thought died last year, is back. The probability of a double-digit year we think is the highest since 2009.”
"HY never declines 2 years in a row folks"
Very wow! Much gains! LOL 🙃 https://t.co/xRzSJzw0q9
— Market Maven (@MarketMaven_BE) January 11, 2019
He predicted that in 2019 would see the S&P Index rose by 13 percent from its finishing point in 2018 (an increase which will mark a finishing point of 2,835).
Tom Lee Says S&P 500 to Rise 13% in 2019 After ‘Mid-Life Crisis’ pic.twitter.com/z9B5EPyg8G
— zerohedge (@zerohedge) January 11, 2019
He argued that the major catalyst behind this increase would be a consistent expansion in profits.
“In short, we believe that the crash of 2018 mirrors the mid-life crisis seen during the middle of bull markets a la 1962 and 1987 and in both cases, the bull market found its footing at the 200-week moving average. That is currently (S&P 500) 2,350 or so. And both midlife crises saw a retest at that level. Is a retest in 2019 possible? Yes, but if so, we would view that as a buying opportunity.”
Tom thanks for all your work on BTC. Met you at a CFA lunch. I think you will be proven right in time. Just like the 10% equity rally was just a few weeks late.
— Jason Beaird (@golflover1000) January 12, 2019
Lee, who serves as both co-founder and Head of Research at Fundstrat Global Advisors LLC., also predicted an increase in earnings to $169 per share in 2019 and a further increase to $183 in 2020.
MACRO 2/ There are 5 arguments for double digit gains in 2019 (below) and these cover the gamut of key drivers:
Internals—% PE<15x pic.twitter.com/oYYYJjyodZ
— Thomas Lee (@fundstrat) January 11, 2019
On Friday morning, he predicted that 2019 would see the S&P Index rise by 13 percent from its finishing point in 2018 (an increase which will mark a finishing point of 2,835). He argued that the major catalyst behind this increase would be a consistent expansion in profits.
MACRO: The market reaction to @federalreserve Powell friendly shift not overdone. Fed became key risk post-Dec FOMC—per famed investor Tepper of Appaloosa “Powell basically told you the Fed put is dead” and seizing of credit followed.
+risk/reward: PE ‘19 14x , at 200wk avg pic.twitter.com/9G86pRjtrk
— Thomas Lee (@fundstrat) January 5, 2019