EddieJayonCrypto
7 Jul 25
Fundstrat co-founder Tom Lee maintains a positive outlook for industrials, financials, and technology stocks in 2024, noting that industrials and financials have already outperformed and technology is gaining momentum. He expects these sectors to lead the market this year and predicts that interest ...
Fundstrat co-founder and managing partner Tom Lee is reaffirming his optimistic outlook for several stock sectors in 2024. At the beginning of the year, Fundstrat forecasted that industrials, financials, and technology stocks would outperform the broader US stock market. Lee highlights that industrials and financials have already surpassed other sectors in performance, with technology stocks beginning to show renewed momentum.
Lee anticipates that these three sectors will continue to lead the equity markets throughout the year. Looking ahead to 2025, he predicts increased demand for equities sensitive to interest rate changes, especially as he expects the Federal Reserve to begin cutting rates next year. According to Lee, rate cuts should benefit financial stocks and smaller capitalization companies, providing a boost across those areas.
On the cryptocurrency front, Lee sees a strong potential upside for Ethereum (ETH), closely tied to the growth of stablecoins—digital assets pegged to fiat currencies or precious metals. Since most stablecoins, including USDC operated by Circle, are built on the Ethereum blockchain, Lee believes an expansion in stablecoin market capitalization will drive a significant resurgence for Ethereum, positioning it as a fundamental backbone in the evolving digital currency ecosystem.