Long-time market bull Tom Lee sees Bitcoin’s BTC/USD recovery to above $50,000 and the surge in the price of crude oil as evidence that the S&P 500 Index could rally strongly in September.
What Happened: Lee, the co-founder of Fundstrat Global Advisors, told CNBC’s “Trading Nation” on Friday that he sees the best opportunity in stocks tied to the economic reopening, including energy and materials, in September.
See Also: How To Buy Bitcoin (BTC)
Lee also advised investors to buy the FAANG stocks that include Facebook Inc. FB, Amazon.com Inc. AMZN, Apple Inc. AAPL, Netflix Inc. NFLX and Alphabet Inc. GOOG, GOOGL.
Lee believes the S&P 500 Index could exceed 4,650 in September but has warned that the market could see a potential 10% pullback in October.
See Also: 3 Reasons For The Crypto Rally, According To Fundstrat's Tom Lee
, FWhy It Matters: Crude oil prices are rising on optimism about increased demand for the commodity amid improving economic growth despite the coronavirus pandemic. Meanwhile, Bitcoin crossed the psychologically important $50,000 level in August for the first time in three months. Stocks tied to economic growth, including energy, are expected to profit as the economy reopens. The Energy Select SPDR Fund XLE has surged almost 31% so far this year.
Lee said in August that a lot of the money that has been sitting on the sidelines is likely going to pour into FAANG stocks if the COVID-19 delta variant subsides. He added that Apple and Amazon.com could rally 20% before the end of the year.
Apple’s year-to-date returns are 16.8%, while Amazon.com’s year-to-date gains stand at 6.8%.
Price Action: Facebook shares closed almost 0.3% higher in Friday’s trading at $376.26, while Apple shares closed 0.4% higher at $154.30 and Amazon.com shares also closed 0.4% higher at $3478.05.
Netflix shares closed 0.3% higher at $590.53 and Alphabet shares closed almost 0.4% higher at $2,895.50.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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