Famous investor Tom Lee thinks the equities market demonstrated an “overreaction” to the rollout of Trump Administration tariffs.
Lee, the co-founder and head of research at Fundstrat Global Advisors, says in a new interview with CNBC that the U.S. Federal Reserve is now in a position to begin cutting rates “because inflation measures are abating.”
The investor notes the odds of the Fed cutting rates in May “have been inching up.” Current wagers on the decentralized gambling platform Polymarket suggest there’s a 33% chance the Fed will cut the policy rate by 25 basis points in two months.
Lee also argues that a “Trump put exists.”
“Look at yesterday, Tesla’s down 15%, and on Truth Social Donald Trump talks about Tesla. So I think a put exists, we just don’t know the level when the White House intervenes.”
Lee says there are “really attractive opportunities” in stocks right now, especially ones that have had large drawdowns.
Earlier this month, Lee warned investors that Bitcoin (BTC) and other crypto assets wouldn’t be immune to market turbulence.
“The work by our technical strategist Mark Newton [shows] Solana, Ethereum, and Bitcoin all have downsides. He has been bearish since mid-January, so I think it’s been correct and his downside target for Bitcoin is $62,000 by the end of March.
But to me, is $62,000 a reason to turn bearish on Bitcoin? I mean if you’re trading it, yeah, but Bitcoin was $100 10 years ago so $60,000 is still a fantastic return and I think Bitcoin’s usefulness is still improving. It’s still a risk-on asset so I don’t expect it to do well if the market is being hit by tariffs.
It’s not immune to that kind of turbulence, but is the trust around Bitcoin going to grow over the next five years? Yes, and is it going to be increasingly viewed as a store of value like gold? Yes, I think increasingly.”
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