JP Morgan’s Tom Lee: Expect a 20% Year End Market Rally (SPY)
Now that NASA has gotten out of the rocket launching business, there must be an unemployed countdown expert out there somewhere, who could give the proper finesse and delivery to that famed phrase, “3 — 2 — 1 — Blastoff!”
I say this because that is exactly what we are poised to see in the U.S. stock market, according to Tom Lee, chief equity strategist at JP Morgan. He’s looking for a 20% year-end rally — from current levels — that would take the S&P 500 to about 1470. Talk about a Santa Claus rally; the last time the S&P closed at the level was December 2007.
“It’s sort of hard to expect through conventional wisdom,” Lee says in the attached clip, adding that a “20-plus-percent” rally in the next 2 1/2 months is doable. And as he pointed out in our previous piece, the return of risk-taking, a trough in the trend of economic data, continued improvement out of Europe and China, and a tailwind from lower crude and commodity prices will be the main catalysts.
See the below interview for Lee’s list of 21 stock picks that he thinks are poised to ride this rocket to new heights.