Veteran investor Tom Lee says investors are better off remaining bullish on markets despite the recent correction in equities and other risk assets. In a new interview on CNBC, Fundstrat’s head of research says that the correction in equities – which saw the S&P 500 dip from above 6,000 to 5,832 – is likely an opportunity for investors to go long rather than stay cautious. “This is another buying opportunity in our view. 2024 has proven to be a year where the market’s been strong and it has eluded many opportunities for sustained weakness. I know [December 18th’s] pullback was really painful, but to us, I think the fundamental supporting stocks are intact and I think it’s a good opportunity for investors here.” Lee notes that the volatility index (VIX) – which measures the stock market’s expectation of volatility based on S&P 500 index options – rose sharply on December 18th. He says that historically, such a rapid rise has correlated with market bottoms. “The market has been bleeding lower. If you look at internals for the last ten days, [December 18th] looks capitulatory because not only did we have a 90% down day, but the VIX exploded by 75%. There are only four times in history where it’s risen 60% in a day, so [December 18th] was the fifth time in its 35-year history. Of those four times, the market recovered all of its losses within a week three out of the four times. The fourth time it took a month. So I think what you had was people panicking to get out of a momentum trade that’s ending because we’re so close to year-end. But here’s the interesting thing. The forward VIX-futures curve barely moved. So it was almost as if people were seeking protection through the VIX on [December 18th].” As of Friday’s close, the S&P 500 traded at 5,930 points. Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Follow us on X , Facebook and Telegram Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post Fundstrat’s Tom Lee Says Recent Market Dip an Opportunity for Investors – Here’s Why appeared first on The Daily Hodl .
