Why This Bullish Analyst Warns Of 7% Drawdown In S&P 500 After Possible 'Minor New High' This Month
Portfolio Pulse from Shanthi Rexaline
Tom Lee from Fund Strat warned of a potential 7% drawdown in the S&P 500 after a possible minor new high this month. Despite a strong performance in 2023, the S&P 500 has been flat in January. The SPDR S&P 500 ETF Trust (SPY) slightly declined. Concerns stem from Federal Reserve comments on interest rates and poor manufacturing data. The upcoming earnings season will be crucial for market direction.
January 17, 2024 | 9:08 am
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Tom Lee predicts a possible 7% drawdown in the S&P 500 after a minor new high, which could impact SPY as it tracks the index. January has been flat, and concerns about interest rates and manufacturing data may affect investor sentiment.
The SPDR S&P 500 ETF Trust (SPY) directly tracks the performance of the S&P 500. Tom Lee's prediction of a 7% drawdown in the S&P 500 is highly relevant to SPY and could lead to a decrease in its price in the short term. The importance is high as the prediction comes from a notable market analyst and is based on recent economic data and Federal Reserve comments. The confidence level is not at the maximum because market predictions are inherently uncertain and subject to change with new information.
CONFIDENCE 75
IMPORTANCE 85
RELEVANCE 100