Fairness strategist Tom Lee issued a mea culpa on Friday, telling traders that “animal spirits” have lifted fairness rates well beyond what he anticipated before in the calendar year.
“Only two months into 2017, the S&P 500 has soared seven%, vastly outperforming our expectations for a ‘flat to down’ 1H [first 50 percent]— in quick, we have been steamrolled,” he wrote in a study be aware. “Our 1H warning was predicated on a flattening produce curve and standard ‘payback’ seen in write-up-Presidential election a long time. But we underestimated the constructive impact that a surge in ‘animal spirits’ to travel fairness ETF inflows (4X pace of 2016) and thus fairness upside.”
Earlier in the calendar year, Lee, who was effectively bullish on stocks past calendar year, became the most bearish soothsayer
on Wall Street, issuing a twelve-month value goal of two,275 for the S&P 500, or about 4.5 per cent reduced from its latest level.
“We have ‘egg on our face’ but however hold out for a improved entry stage,” he mentioned.