Infamous Bitcoin Price Predicter Tom Lee Forecasts a New Rally for the S&P in 2019
The Wall Street analyst Thomas Lee believes that the Standard & Poor 500 Index will be growing during 2019. The last quarter of 2018, traditional markets recorded a massive sell-off affecting many different companies.
In a conversation with CNBC’s Fast Money, Thomas Lee said that stocks are going to register double-digit increases this year. He explained that the probability of having a double-digit year is the highest since 2009.
In his investor note, he emphasised something similar. Thomas Lee mentioned that the S&P Index will be growing 13 percent in 2019. The catalyst behind this growth will be related to a consistent expansion in profits. About it, he commented:
“In short, we believe that the crash of 2019 mirrors the mid-life crisis during the middle of bull markets a la 1962 and 1987 and in both bases, the bull market found its footing at the 200-week moving average. That is currently (S&P 500) 2,350 or so. And both midlife crises saw a retest at the level. Is a reset in 2019 possible? Yes, but if so, we would view that as a buying opportunity.”
He was also bullish about FAANG stocks saying that during odd number years these companies tend to increase and perform well. Some companies that will also be performing well are related to artificial intelligence and automation, including Amazon or Nvidia.
Thomas Lee is known in the cryptocurrency space for making very high predictions for Bitcoin in 2018. At the end of the last year, he said that Bitcoin should be traded at least around $13,800, not less. He predicted Bitcoin to end 2018 close to $25,000.