Tom Lee Sees 10% Correction Before S&P 500 Hits 8,000

Fundstrat's Tom Lee believes that before the S&P 500 hits 8,000, it needs to undergo a 10% correction. This comes after the index closed at a fresh record on August 12.

Lee cites four potential pullback triggers: a record $1.53 trillion in margin debt, the uncertainty surrounding Kevin Warsh's new inflation framework, the November midterm elections, and the staggered lockup expiry of SpaceX shares.

He emphasized that these factors are not reasons to sell but rather cautionary signs that the market could be due for a correction.