Tom Lee on CNBC: "A Lot of History to Make" Before the End of the Year

FS Insight Team

With stocks on track for a winning week on Friday afternoon, Fundstrat Head of Research Tom Lee dropped by CNBC’s studios in Miami to talk to Scott Wapner on Closing Bell.

Wapner jumped right to the chase. Lee had written in his research notes earlier in week that the risk-reward for stocks is arguably better now than back in February, when the market was at all-time highs.

“How is that possible?” asked Wapner.

“When we go back to February when the market was at all time highs, we have to keep in mind that there were a lot of uncertainties ahead of us, and we weren’t necessarily looking ahead to 2026,” Lee explained. Now, however, companies have significantly better visibility on tariffs, and they’ve survived what Lee described as a “black swan event” and a “near attack of the economy” – and managed to beat earnings expectations in the process. Looking forward, investors and businesses can turn at least some of their attention to the potential benefits of other parts of President Donald Trump’s agenda – deregulation, tax cuts, and, in Lee’s view, “a Fed that’s on hold now but probably doing more cuts in 2026.”

“You keep talking about 2026. Are you writing off 2025?” asked Wapner.

Not at all, Lee responded. “We have a lot of history to make” between now and year-end, he said. Liberation Day caused the VIX to surge above 60, forcing many investors to liquidate and thus, forcing a reset in positioning and sentiment. “Investors are barely turning neutral now,” Lee noted, and “as they become more optimistic, that’s upside for stocks.”

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