(TheStreet) - Veteran analyst Tom Lee has a reputation for calling turning points long before the rest of Wall Street catches on.
That said, with the big banks having weighed in, Lee just dropped his S&P 500 target, betting once again that the crowd is too cautious.
Given the current stock market setup, it’s a call that cuts directly against today’s “too far, too fast” narrative following years of oversized gains, but Lee feels the skepticism itself is part of the setup.
Additionally, with the Fed delivering 175 basis points of easing since September 2022, and tailwinds such as AI and on-shoring in play, Lee believes investors are still underestimating the fuel that remains in this bull market.
Who is Fundstrat’s Tom Lee?
Tom Lee is one of the most followed voices on Wall Street, serving as the co-founder and head of research at Fundstrat Global Advisors.
His calls stand out because of his impeccable track record and his knack for nailing key turning points.
For instance, in March 2020, when markets tanked, Lee urged investors to scoop up stocks at the pandemic lows instead of reallocating to cash.
Then, heading into 2023, he felt the consensus was too bearish, telling clients to lean into a new bull market spearheaded by tech and AI, a view proving prescient as the S&P 500 jumped to record highs.
Lee thinks skeptics misjudge the market
Lee feels investors are misreading the market’s setup for 2026.
He lays claim to the fact that the market isn’t running on fumes, but rather on a policy backdrop that’s quietly adding fuel.
The Fed recently delivered its third consecutive 25 basis point cut, lowering interest rates to 3.50%–3.75%, its lowest in nearly three years.
By Moz Farooque
December 12, 2025
