Stock market strategist Thomas Lee says there's plenty of proof the bull market still has several years to go, and underperforming fund managers should help drive prices higher into the end of the year.
Lee, who left JPMorgan as chief equity strategist in June, has launched his own equity research firm, Fundstrat Global Advisors. In his first note Monday, he said to "expect a "beta" chase" in the fourth quarter as fund managers struggle to improve performance, and that should drive stocks 5 to 6 percent higher in the fourth quarter.
"This year fund manager performance is the worst since 1997 versus their bench marks," he said in an interview. Lee notes that only 10 percent of fund managers are beating their benchmark by 250 basis points, well below the long-term average of 26 percent of managers.
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