tl;dr
Tom Lee, co-founder and head of research at Fundstrat Global Advisors, believes recent US military strikes on Iranian nuclear facilities will benefit the stock market. He notes that markets had already priced in anxiety, making the rally typical. Lee expects the stock market to continue rising into ...
Tom Lee, co-founder and head of research at Fundstrat Global Advisors, believes recent US military strikes on Iranian nuclear facilities have ultimately strengthened the stock market's outlook. Despite initial market anxiety, Lee notes that much of the nervousness had already been priced in, making the ensuing rally a typical response rather than a surprise.
In a recent interview, Lee explained that the market had already experienced de-risking and an elevated VIX, or volatility index, prior to the strikes. This preemptive caution helped cushion the stock market, allowing it to pass what Lee describes as a "stress test" following the geopolitical event. Contrary to initial expectations, oil prices did not surge dramatically and stocks actually increased.
Looking ahead, Lee projects continued upward momentum in the stock market into 2026. He underscores that the market's resilience in response to what many would have considered a "black swan" event—US military action targeting nuclear facilities—suggests a stronger position for stocks going forward, particularly in Europe.
This perspective challenges conventional expectations that such military activity would lead to soaring oil prices and a downturn in equities. Instead, Lee's analysis implies that the market has adjusted to heightened geopolitical risk, offering investors a potentially bullish outlook for the remainder of the year and beyond.