The chapter delves into the alignment of dual x-axis lines on stock charts, comparisons between tech companies like Nvidia with historical examples, and the US dominance in technology supply. It explores the relationship between interest rates and stock valuations, highlighting the historical dynamic between the 10-year yield and forward PE since 1935. The discussion also covers market performance, the impact of higher rates on company earnings, and market targets for 2024 and 2025.
The stock market has had a torrid run in 2024 despite the fact that interest rate cuts haven't materialized in the way people had expected at the start of the year. In fact, outside of a few blips here and there (like spring 2020), US stocks have been phenomenal performers for years. Tom Lee, the founder of Fundstrat and FS Insight has been bullish for a long time, having caught the correct side of this lengthy trend. On this episode, we speak to the former JPMorgan strategist about how he thinks about the market, what he sees happening right now in macro and demographic trends, and why he thinks it’s plausible that the market could roughly triple in the next six years.
See omnystudio.com/listener for privacy information.