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Tom Lee expects zigzag movements on the stock market in December with new record highs
According to a report from www.finanzen.net, Tom Lee, head of research at Fundstrat, predicts a zigzag movement on the stock market in December, but this could also lead to new record highs. The move is expected to be influenced primarily by economic news, and the Fed's FOMC meeting and press conference on December 13th will be in focus. Lee expects the S&P 500 to rise to 4,800 by the end of the year, which would be close to its all-time high set in January 2022. Economic news is expected to provide some momentum, with weaker private consumer spending price data potentially providing a boost. However, Lee doesn't expect a straight line...
Tom Lee expects zigzag movements on the stock market in December with new record highs
According to a report by www.finanzen.net,
Tom Lee, head of research at Fundstrat, predicts a zigzag movement on the stock market in December, but this could also lead to new record highs. The move is expected to be influenced primarily by economic news, and the Fed's FOMC meeting and press conference on December 13th will be in focus.
Lee expects the S&P 500 to rise to 4,800 by the end of the year, which would be close to its all-time high set in January 2022. Economic news is expected to provide some momentum, with weaker private consumer spending price data potentially providing a boost. However, Lee does not expect the potential profits to follow a straight line. Rather, new labor market data and consumer inflation data released in early December could lead to downward volatility. A rise in bond yields and a fall in stock prices could result if the releases beat consensus estimates.
The reason for this "zigzag" movement, according to Lee, is the hyper-reactive nature of interest rate markets, responding to the opposing forces of falling goods and housing inflation versus resilient labor markets. A strong jobs report is expected as thousands of auto industry workers rehired in November. However, any losses in stock markets in November due to jobs and inflation reports are likely to be temporary.
The FOMC meeting and Fed press conference on December 13th will be the main drivers for stock prices in December. Lee sees room for a “loose turn” among Fed members. Despite $240 billion in withdrawals from stock funds and ETFs, that money could ultimately serve as purchasing power and support the stock market.
Overall, Lee expects the stock market to be volatile but positive in December, recommending investors buy on a dip.
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.
Read the source article at www.finanzen.net