Tom Lee changes his mind on stocks that could lead the market’s next step up
Thomas Lee, Fundstrat Global Advisors
Scott Mlyn | CNBC
The recent drop in interest rates means that investors will have to move part of their portfolio in the short term, according to Tom Lee of Fundstrat.
The 10-year Treasury yield was trading below 1.5% on Friday despite a 5% rise in inflation last month. The yield topped 1.7% earlier this year, raising concerns about the direction of growth stocks as higher rates could potentially increase costs for companies and expose the sector’s high valuations.
Lee, who won a large following in 2020 for his pandemic analysis and related market calls, said in a note to a client on Friday that the drop in interest rates means some of the early industry trends in the market. of the year should be reversed. in the coming weeks.