There's still time for the S&P 500 to catch a 10 percent rally going into the new year, Fundstrat Global Advisors' Tom Lee told CNBC Friday.
"Obviously we're working with a really short time frame, but we know that markets have been moving very quickly in the last couple of months," the managing partner and head of research said on "Fast Money." "I think, to me, anything that happens between now and year-end is a lot more about positioning than macro development."
The S&P is now in correction territory after shedding another 1.9 percent on Friday, closing just under 2,600. The index is down 2.76 percent on the year. But Lee says there could be a significant reversal in the next 10 days.
A 10 percent turnaround would close the S&P at 2,860 at the end of the year.
"I think the market is gravitating toward quality names," he said.
While 2019 might be a tough year for equities, he argues it's "too early" to judge if a recession is on the way, and that makes him bullish.
Choose "Walt Disney over Netflix … Cisco over FAANG, and I think maybe that's how people want to be positioned anyways, but I think that's the stuff they're willing to sort of buy up."
Disney is up 4.3 percent and Cisco is up 19.6 percent in 2018.
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