Wall Street guru who predicted recent market surges now forecasts another 10%-15% rally in the coming months

Tom Lee, co-founder of Fundstrat Global Advisors, known for correctly predicting stock market outlook, claimed that after a tough beginning to the year, a huge rebound is in store, with the possibility of a 10%-15% bounce in the coming months, according to a report.

Impact of Trump’s Tariff on the Market

Lee's forecast comes after US indexes have faltered, wiping off their post-election gains after US President Donald Trump took office, according to Fortune. This is due to Trump's tariff war that has led to fears of recession among consumers and businesses, as per the report.

Time to Buy

He said "I think it’s very possible that March, April, May could actually be one of these huge rally months where we’re rallying 10-15%," as quoted by Fortune.


Lee emphasized that now is the time to buy as the markets have unsettled, Fortune reported. He also warned that missing the key trading days could end up being a costly mistake for investors, as per the report.

Based on Lee's forecast, the best day for the markets all year long could be right around the corner, according to the report. According to him, when growth starts slowing or the employment market falters, either Trump or the Federal Reserve would move to intervene on behalf of the economy, Fortune reports.

He said that, "So I think that’s what’s going to be the positive catalysts in the next couple of weeks," as quoted in the report. Lee also added that "stocks often bottom out before bad news peaks," as quoted by Fortune.

Signs of Economic Strain

The Atlanta Fed’s GDPNow tracker found that the economy may shrink by 2.4% in the first quarter, Fortune reported. Meanwhile, the latest job data reveals signs of federal layoffs and concerns over tariffs, as per the report.

FAQs

What is Tom Lee forecasting?
Tom Lee sees a 10%-15% stock market bounce in the months ahead, despite a rough beginning to the year.

What could trigger a strong rally in the stock market?
Lee expects that if growth starts to slow or the job market weakens, either Trump or the Federal Reserve may step in to support the economy, Fortune reported.