Lee Sees Surprise Rally in Markets Following FED Meeting

Tom Lee, Head of Research and Chief Investment Officer at Fundstrat, believes markets may surprise investors in September by triggering a strong rally. This comes despite the fact that September has historically been a weak month for markets.

The FED meeting on September 15th is a critical turning point, according to Lee, who thinks that if no changes are made to interest rates, stock markets could surge. He suggests that a major correction might be postponed until October or stocks may experience a limited pullback after rising above the 8,000-point level in the S&P 500 index.

Lee also expressed optimism about the cryptocurrency market, stating that the current 'crypto winter' is nearing its end. He reminded that crypto assets were the best-performing macro asset class in the third quarter of the year and pointed out that investor interest would quickly return as the 4-year crypto cycle comes to an end.

He highlighted regulatory changes as a key catalyst for the sector, noting that if the CLARITY Bill passes Congress this year, Bitcoin and Ethereum will have 'an extremely strong and massive fourth quarter'.