Tariffs Haven’t Hurt Stocks Yet, Tom Lee Says

The threat of tariffs became a reality this week. Yet, the S&P 500 edged down a modest 0.24% this week, recovering from steeper losses on Monday. 

“Stocks have actually taken [tariffs] in stride,” said Fundstrat Head of Research Tom Lee on CNBC’s Closing Bell with Scott Wapner. “[Tariffs] had more bark than bite. They’ve proven to be opportunities for investors to buy.”

The fact that markets didn’t decline further because of tariffs, and the S&P 500 ended January up 2.7%, reinforced Lee’s belief that investors’ playbook hasn’t changed from last year. They are still bullish on the market. 

“It does feel like the same market we had last year,” he added.

He reassured investors to not worry too much about Friday’s University of Michigan consumer inflation expectations survey, which spooked stocks, as there’s a “political component to it.”

This year, Lee recommends buying financials, smalls caps, and industrials.

Subscribe to FS Insight research by Fundstrat to learn why Lee thinks markets can continue rallying even without tech stocks. 

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