S&P 500 Ends Week at All Time High, NASDAQ/IWM Strengthen

It was a year ago this week that our Head of Research, Tom Lee, made what is easily one of the best contrarian market calls of the last ten years. In the depths of the pandemic-induced market crisis Tom said that you should buy stocks at the ‘Epicenter’ of the crisis, or those closest to the social and economic consequences of COVID-19. Since the depths of that crisis, the market went up around 75%, led by the Epicenter sectors. In March 2020, even if an investor expected financial markets to survive they bought what was working and what was safe.

We’re convinced that what will be known by posterity as ‘The Great Reopening’ has begun. We think in the future to indicate how good an investment is, someone might say something like it’s as much of a no brainer as buying travel & leisure and energy stocks before the GREAT REOPENING. These stocks are not rentals, they are not a trade. A lot of valuation is about survivability and these companies have proven they’re unkillable in the face of the greatest exogenous shock of our lifetimes. Here’s the other thing, real profits today are not discounted. And those profits are coming for the poised, waiting and revamped Epicenter stocks that are under-owned and likely lead indexes higher.

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