Fundstrat’s Tom Lee is urging investors to be cautious about the market until the 2024 US election is over. He thinks the next eight weeks could be a good time to buy the dip, as the market has been on a tear lately.
Lee sees a potential “Trump trade” brewing, especially in Bitcoin and energy. He believes the market is starting to bet on a Trump victory, which could benefit these sectors.
“The market is more starting to bet on Trump in the election,” Lee said. “Bitcoin has not acted well. The two things we’re watching in terms of election here are Bitcoin and energy.”
Lee has been saying similar things for a while. He thinks that if the market becomes more convinced of a Trump win, cyclical stocks, small caps, and Bitcoin will perform better. This is because there are clear policy differences between the candidates that could impact these sectors.
So, what should you do? Lee suggests being cautious for the next eight weeks, but be ready to buy if the market dips. He thinks there could be some good opportunities to snag some bargains.
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