EddieJayonCrypto
26 May 25
Fundstrat’s head of research, Tom Lee, describes the current stock market rally as a "most hated" surge, with investors skeptical despite a 17% rise in the S&P 500 from recent lows. He attributes the rally to recovery from a sharp 20% drop triggered by an unexpected event. Lee notes historical patte...
Fundstrat’s head of research, Tom Lee, characterizes the current stock market rally as a "most hated" surge, marked by widespread investor skepticism despite a robust 17% ascent in the S&P 500 nearing all-time highs.Lee attributes this rally to recovery from a steep 20% plunge triggered by an unexpected "black swan" event, underscoring how such sharp declines often lead to doubt before bullish sentiment returns. Historical trends reveal that investors typically resist rallies following market drops, only embracing optimism once new all-time highs are established.Highlighting Bitcoin’s recent breakthrough above $111,000 as a leading indicator, Lee notes that cryptocurrency often precedes the S&P 500, both reflecting underlying global liquidity trends.Addressing concerns about Moody’s recent downgrade of U.S. government debt from AAA to AA1, Lee remains unfazed, citing prior downgrades by S&P in 2011 and Fitch in 2023 without lasting negative effects on markets.In summary, Lee’s analysis suggests the current market momentum, though mistrusted, is strong and underpinned by fundamental liquidity, with historical patterns pointing toward renewed investor confidence as new highs are achieved.