Name: Tom Lee: Metals proving to be a real, genuine asset class
Uploaded: 2026-01-26T20:43:44+00:00
Duration: 311 s

Speakers

Tom Lee — Managing Partner & Head of Research, Fundstrat

Carter Worth — Technician, Fast Money

Summary

Tom Lee says metals are proving to be a genuine asset class, driven by geopolitical uncertainty, dollar weakness, and dovish central banks, and he does not see that as bad for equities. He expects earnings acceleration, fading tariff headwinds, and dollar weakness to anchor stocks and support Fundstrat's 7700 target by year-end, while warning of speed bumps and parabolic precious-metals timing. He also lists preferred sectors and areas, including energy, basic materials, Mag-7, financials, industrials, and small caps.

Tom Lee discusses metals as a broad asset class, including gold and precious metals.
He links the metals rally to geopolitical uncertainty, dollar/currency weakness, and dovish central banks.
He says the metals move is not bad for equities and may signal improving risk appetite.
He sees accelerating earnings and dollar weakness supporting stocks and Fundstrat's 7700 target.
He says government shutdowns have historically been equity buying opportunities.
He flags parabolic silver/precious-metals moves as a timing risk while still favoring portfolio exposure.
Fundstrat's favored areas include energy, basic materials, Mag-7, financials, industrials, and small caps.
He says bank fundamentals are strong despite policy pressure, and tokenization/blockchain could be productivity drivers.

Ideas

Tom Lee Managing Partner & Head of Research, Fundstrat 0:32

Metals are a genuine portfolio asset class.

Metals are proving to be a genuine asset class, not just a niche for goldbugs. Over the past three years they have been a juggernaut, driven by some combination of geopolitical uncertainty, dollar/currency weakness, and dovish central banks. Gold's move may also be a glimpse into dollar weakness or easier central-bank policy, which is good for asset prices and risk appetite. Even with parabolic moves in precious metals, commodities and especially precious metals deserve a place in portfolios.

Tom Lee Managing Partner & Head of Research, Fundstrat 1:03

Metals signal risk appetite for stocks.

Tom Lee does not view the metals move as bad for equities. If it is anticipating dollar weakness or more dovish central-bank moves, that is good for asset prices. He sees the gold move as a possible signal that risk appetite is growing for stocks.

Tom Lee Managing Partner & Head of Research, Fundstrat 2:32

Earnings anchor S&P 7700 year-end.

Earnings growth is accelerating because of onshoring and disappearing tariff headwinds, and if the dollar weakens there is more upside to the earnings story. Investors are not paying for that because multiples have compressed. This anchors stocks and supports Fundstrat's 7700 target by year-end, even with speed bumps before then.

Tom Lee Managing Partner & Head of Research, Fundstrat 3:27

Silver parabolic; watch timing, not chase.

Responding to Carter Worth's sell-silver call, Tom Lee says the move is parabolic over the last two to three months. It is dangerous to fade such an extension because it can run longer, but a parabolic move more often marks the end of a move rather than the beginning, making timing the key issue. He still argues commodities and especially precious metals deserve a portfolio allocation.

Tom Lee Managing Partner & Head of Research, Fundstrat 4:34

Energy, basic materials are top sector picks.

Fundstrat's top sector picks for the year, established in early December, are energy and basic materials.

Tom Lee Managing Partner & Head of Research, Fundstrat 4:41

Fundstrat still likes Mag-7.

Fundstrat still likes the Mag-7 as a favored equity area. The available transcript does not provide a separate Mag-7-specific rationale beyond that continued preference.

Tom Lee Managing Partner & Head of Research, Fundstrat 4:41

Bank fundamentals strong despite policy pressure.

Fundstrat still likes financials. Banks are being buffeted by the White House choosing winners and losers, including potential credit-card rate caps and limits on institutional home buying, which hurts banks to an extent. But bank fundamentals are very good, and tokenization/blockchain are potentially big productivity drivers.

Tom Lee Managing Partner & Head of Research, Fundstrat 4:43

Still likes industrials.

Fundstrat still likes industrials as part of its favored areas. No specific rationale is developed in the available transcript.

Tom Lee Managing Partner & Head of Research, Fundstrat 4:44

Still likes small caps.

Fundstrat still likes small caps as part of its favored areas. No specific rationale is developed in the available transcript.

Tom Lee: Metals proving to be a real, genuine asset class

Summary

Ideas

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