Tom Lee, Fundstrat’s head of research and chief investment officer, outlined his latest outlook for the Federal Reserve’s September policy decision, U.S. stocks and global markets in an interview with CNBC.
Although September has historically been a weak month for financial markets and uncertainty remains over the path of interest rates, Lee said markets could deliver an upside surprise contrary to prevailing expectations.
September Fed meeting seen as market turning point
Lee described the Fed meeting on September 15th as a critical turning point. He said that if the central bank leaves interest rates unchanged, stock markets could trigger a very strong rally.
According to Lee, a major market correction could be delayed until October. Alternatively, stocks could see only a limited pullback after the S&P 500 rises above the 8,000-point level.
Crypto market recovery could accelerate
Lee also said the periodic slowdown in the cryptocurrency market, often referred to as a “crypto winter,” had been relatively shallow and was approaching its end. He noted that crypto assets became the best-performing macro asset class during the third quarter of the year.
With institutional investors increasingly turning to crypto stocks, Lee said investor interest could return quickly as the four-year crypto cycle reaches its conclusion in the coming days.
The analyst identified potential regulatory changes as the sector’s biggest catalyst, stating:
“If the CLARITY Bill passes Congress this year, Bitcoin and Ethereum will have an extremely strong and massive fourth quarter.”
This is not investment advice.
