Yahoo Finance
Tom Lee of Fundstrat is undeniably one of Wall Street's most bullish market strategists.
In fact, it's unusual for Lee not to be bullish.
To his credit, Lee has nailed most of his bull market calls over the past several years.
Interestingly, however, Lee recently appeared on CNBC to discuss what he called an upcoming three-phased market.
Lee expects a bumpy ride in the near term, including acorrectionor bear market that could begin shortly.
Will AI create the world's first trillionaire?Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need.Continue » At recent prices, the benchmarkS&P 500(SNPINDEX: ^GSPC)index has risen nearly 11% this year. That's impressive, considering all the challenges it's had to overcome, including doubts about artificial intelligence (AI) at the beginning of the year and then the Iran war, which has led to higher oil and gas prices that are likely contributing to elevated inflation.
However, Lee said the market has been bolstered by incredibly strong first-quarter earnings.
According to Lee, most market forecasters had penciled in $70 of collectiveearnings per share (EPS)for the S&P 500.
First-quarter EPS actually came in at about $80, a big beat on expectations for what had already been expected to be a strong quarter of growth.
If the market stays on this trajectory, that's $40 in additional EPS on an annualized basis, which could lift the S&P 500 by 800 to 1,000 points, according to Lee.
However, Lee's base case, based on what he and the team at Fundstrat had expected to be a "challenging year," is a three-phased market.
The first phase, currently underway, is largely bullish.
| Product | Price | Change |
|---|---|---|
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| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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