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‘Buy the Dip’ Because the S&P Could Rally 17 Percent in 2019 says Tom Lee

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.

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.”

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). 

He argued that the major catalyst behind this increase would be a consistent expansion in profits.

 

 

He added: 

“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.”

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.

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.

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