Fundstrat's Tom Lee explains the 'three market phases' he is watching this year
Speakers
Tom Lee
— Managing Partner & Head of Research, Fundstrat
Brian Belski
— Chief Investment Strategist, BMO Capital Markets
Summary
Tom Lee outlines a three-phase market year with a near-term rally, a digestion period until October, and a strong 2027 rally. Brian Belski agrees on a near-term correction of 5-10% and stresses the earnings-driven, volatile nature of the market. Both see long-term upside but caution about near-term headwinds.
- Tom Lee highlights Q1 earnings beat as driver of S&P rally towards 7700.
- Lee expects a digestion period until October due to new Fed chair, energy shock, and IPO supply.
- Lee forecasts a powerful rally in 2027, calling it potentially historic.
- Brian Belski expects a 5-10% correction heading into the fall.
- Belski emphasizes earnings-driven market leads to more volatility and corrections.
- Both guests see a broadening out theme supporting long-term gains.
- The discussion covers oil, bond market pricing, and Fed policy uncertainty.
Trade Ideas
S&P 500 rally to 7700
After hitting 7700, the market will digest multiple headwinds until October: a new Fed chair, energy shock from petroleum product shortages, and IPO supply from SpaceX, OpenAI, and Anthropic, creating a bear-market-like pressure.
