Fundstrat World Advisors’ managing companion Tom Lee thinks the horrible macroeconomic circumstances of 2022 are “unlikely to persist” subsequent yr.
In a brand new Twitter thread, Lee says that he thinks inflation is falling quicker than the markets and the Federal Reserve count on.
The CNBC contributor additionally notes the Fed likes to see a powerful labor market.
“Reminder, many inflation drivers have actually imploded and down/flat for 2022 after surging mid-year. One doesn’t must look far to see progress.
Whereas wages matter, the Fed doesn’t need to crush the financial system and doesn’t essentially need to crush jobs.”
Lee additionally says shares are likely to bounce again after down years.
“Until the inflation disaster persists, monetary circumstances will ease. This implies shares rise, and shares not often publish back-to-back annual declines Actually, three of the 5 best-ever annual positive aspects got here after a ‘unfavorable’ yr…
And it nonetheless puzzles me why the US is the worst-performing international inventory market in 2022 exterior of China-zone-ish international locations. Why is Europe outperforming when Europe is within the tooth of an power crunch/inflation spiral?”
Lee factors to a stat shared by Matt Cerminaro, a analysis affiliate at Fundstrat. Cerminaro notes that there have been solely three years prior to now 50 (1974, 2002 and 2008) when the S&P 500 has had as many -1% days as 2022.
The years following 1974, 2002 and 2008 all witnessed a minimum of 23% positive aspects, according to Cerminaro.
“Buyers have had a painful yr.
S&P 500 in 2022 has had 63 -1% days. Ouch.
Previously 50 years, there have solely been 3 years with as many days down -1%:
1974: n= 67
2002: n= 73
2008: n= 75
Returns in following 12 months:
1975: 32%
2003: 26%
2009: 23%
2023: ?”
Do not Miss a Beat – Subscribe to get crypto e-mail alerts delivered on to your inbox
Test Value Motion
Comply with us on Twitter, Facebook and Telegram
Surf The Each day Hodl Combine
 
Disclaimer: Opinions expressed at The Each day Hodl will not be funding recommendation. Buyers ought to do their due diligence earlier than making any high-risk investments in Bitcoin, cryptocurrency or digital property. Please be suggested that your transfers and trades are at your personal danger, and any loses it’s possible you’ll incur are your duty. The Each day Hodl doesn’t suggest the shopping for or promoting of any cryptocurrencies or digital property, neither is The Each day Hodl an funding advisor. Please notice that The Each day Hodl participates in internet online affiliate marketing.
Generated Picture: Midjourney