Stocks Could Recover to Records In the Next Six Weeks, Tom Lee Says on CNBC

FS Insight Team

Fundstrat Head of Research Tom Lee says stocks are in the midst of a “waterfall correction,” meaning that they could post a symmetric rebound that charges the S&P 500 back to all-time highs in six weeks.  

“For anyone who thinks that they’ve lost 10% and it’ll take them forever to make that back, if they are patient, they might make that back up in six weeks,” said Lee on CNBC’s Power Lunch with Kelly Evans and Brian Sullivan. 

Investors were optimistic about stocks coming into the new year, but over the past six weeks, that enthusiasm has sharply faded. DOGE cuts, a yo-yoing tariffs policy, and worries about a growth scare have dragged the S&P 500 down 4.3% this year. 

Lee said there is a “very high probability” that a tariff solution happens before the next three weeks, which could boost stocks even before a resolution is finalized. He pointed to the 1962 Cuban Missile Crisis, which saw markets bottoming 7 days into the 12-day long confrontation. By the time the crisis was over, the market had already recovered two-thirds of its losses.

That’s just one of the reasons why he still believes it’s possible that stocks could ultimately end the year up 15-16%. 

“People really need to be patient, and just not outtrade themselves,” he said. “I don’t think people should write off the rest of the year.”

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