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- Fundstrat’s Tom Lee believes investors should buy into the recent drop in the stock market, according to a note on Friday.
- Lee said the 10% drop in the Nasdaq 100 likely represents a “local low” and that stocks have “more positive supports that are likely to dominate in 2021,” according to the note.
- Here are 7 reasons why investors should “buy the drop” in stocks, according to Lee.
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US equities have suffered a setback in the past three weeks after rising interest rates and concerns about inflation triggered a mass exodus from high-growth tech companies and cyclical stocks heavily exposed to a reopening of the market. economy.
The Nasdaq 100 fell as much as 10% from its mid-February peak, while the S&P 500 fell as much as 6%. The downward move was even more pronounced in the ARK Disruptive Innovation ETF managed by Cathie Wood, which fell up to 33% from its recent peak.
But Fundstrat’s Tom Lee thinks investors should take advantage of the recent decline in the stock market and “buy the drop,” according to a statement on Friday.
“Actions have multiple positive supports and this …
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