
Tom Lee, former chief stock strategist at J.P. Morgan Chase and chief investment officer of Fundstrat Capital, predicted on Monday that the S&P 500 index will rise to 6,300 points by the end of the year, citing favorable market conditions and historical patterns that indicate that stocks will continue to strengthen in December.
Lee emphasized the historical precedent, saying, “In the first half of the election year, when the market increased by more than 10%, there was a 100% increase in December.” He pointed out that 10-year US Treasury yields fell back to 4.1%, creating favorable conditions for multiple expansions.
Lee's optimism extends to the cryptocurrency market. He expects Bitcoin to surpass 0.1 million dollars by the end of the year and possibly reach 0.25 million dollars by the end of 2025. His predictions for cryptocurrencies are in line with recent market momentum, and despite recent fluctuations, Bitcoin is trading at a price of $96,000.
The strategist's S&P 500 targets fall between Wall Street's competing predictions. Bank of America's securities department recently predicted that by the end of 2025, the index will reach 6,666 points, up 10% from current levels. The S&P 500 closed at 6047.15 points on Monday, marking the continuation of the general market's upward momentum.
Lee responded to concerns about the tariffs proposed by President-elect Trump's administration, saying the tariffs could be an effective negotiation tool without seriously harming corporate profits.
“Overall, I don't think the Federal Reserve will pursue policies that damage corporate profits, so the end result may be beneficial to companies,” he said.
“The Federal Reserve's goal is to lower the cost of capital for homeowners, mortgages, and small businesses,” Lee said. He explained that while the market is concerned about potential economic weakness, lower yields may be beneficial to the overall economy.