Fundstrat’s Tom Lee said the S&P 500 could significantly surpass his 5,200 price target by the end of 2024.
Lee said a positive January for the stock market bodes well for further gains throughout the rest of the year.
“If January’s barometer is right, the upside of our S&P 500 target could be as much as 5,500 or more,” Fundstrat said.
The positive return on the stock market in January makes Fundstrat’s Tom Lee suspect that the end of the year has arrived S&P500 Price target of 5,200 may be too low.
Lee has been one of the most bullish strategists on Wall Street last year, and he managed the 2023 bull market rally when most other strategists were worried about a possible recession.
According to Lee, the stock market got off to a rough start this year the first five trading days of January generate negative returns after a strong Sinterklaas gathering. When these trading indicators flash negatively, it is usually a bad sign for stocks for the rest of the year.
But with the S&P 500 on track to rise more than 2% in January, the so-called January barometer has offset both negative trading indicators, according to Lee.
“The entire year usually takes place in the first part of the year, which means what happens in January tells us a lot about the year,” Lee said.
Lee crunched the numbers and found that since 1950, there have been 13 instances where the S&P 500 posted a return of more than 15% in the previous year and a positive return in January, as happened this month. Full year returns were incredibly strong after that, with an average gain of 16% and a win ratio of 92%.
“I think this is confirmation that we are on track for double digits…