Stocks could hit record highs this summer on cautious investor positioning and better-than-expected COVID-19 data, Fundstrat’s Tom Lee says
- The stock market has been resilient amid rising COVID-19 cases in the US, suggesting that investors had been “bracing for a more dire path regarding COVID-19,” Tom Lee said in a note published on Monday.
- That, combined with cautious investor positioning toward equities, means the stock market is in “risk-on” mode and could hit record highs this summer, Lee said.
- With mutual funds holding elevated levels of cash, and hedge funds turning bearish in June, investors should remain overweight stocks, Lee concluded.
- Visit the Business Insider homepage for more stories.
A resilient stock market amid a surge in COVID-19 cases and cautious investor positioning toward stocks suggests the S&P 500 index could hit record highs this summer, according to a note published by Tom Lee’s Fundstrat on Monday.
Lee said markets have been “bracing for a more dire path regarding COVID-19,” which despite the rising infections has yet to see a sustained increase in hospitalizations and fatalities.
According to Fundstrat, US gross hospitalizations due to COVID-19 are down 84% since the peak in early April, while US daily COVID-19 fatalities are down 83% since the peak in early …continued .
[Source: Business Insider]