Tom Lee Predicts S&P 500 Surge In 2024 Despite Early Year Downturns
Portfolio Pulse from Bibhu Pattnaik
Tom Lee of Fundstrat predicts a significant rise in the S&P 500, with a target of 5,200 by the end of 2024, despite anticipating a downturn of about 5% in February or March. He cites the market's overestimation of interest rate cuts, potential AI development disruptions, the need for market stabilization, and typical early-year election cycle downturns as factors for the early-year pullback. Fundstrat views any dips as buying opportunities, with substantial cash reserves expected to cushion the market. ETFs like SPDR S&P 500 ETF Trust (SPY) and Vanguard Total Stock Market ETF (VTI) could be impacted by these market dynamics.
December 30, 2023 | 8:12 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
SPDR S&P 500 ETF Trust (SPY) is expected to experience volatility with a potential early-year downturn followed by growth, aligning with the S&P 500's projected trajectory.
Given that SPY directly tracks the S&P 500, any significant movements in the index, as predicted by Tom Lee, will directly impact SPY. The forecasted growth to 5,200 by year-end suggests a bullish trend despite the expected early-year pullback.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Vanguard Total Stock Market ETF (VTI) may see similar trends to SPY, with potential short-term downturns but overall growth in line with the broader market.
VTI, while more diversified than SPY, is still largely influenced by the performance of the overall market. The predicted S&P 500 surge suggests a positive outlook for VTI, despite the possibility of short-term volatility.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 80