Despite the "disappointing" start to the year, strategist Tom Lee is still bullish on the market. In fact, he still thinks stocks will have double-digit gains.
"We're really looking at a plethora of negative headlines— whether it's Europe, oil, dollar—but we really have to focus on some of the things that are going to matter, like consumer," the co-founder of Fundstrat Global Advisors said in an interview with "Squawk on the Street."
"The consumer, I think, is going to have some positive catalysts over the course of the year, and I think that is going to turn sentiment back into bullish."
For example, consumer credit is recovering, and lending standards are coming down, he said. That will play into stronger housing.
Lee expects consumer spending to pick up when people think the economic recovery feels permanent.
"I think it is a June quarter, March quarter story of consumer spending strengthening," he said.
Lee also thinks the market will get a boost from the strong U.S. dollar. because it will cause P/Es to expand and will cause a flurry of mergers—with European companies buying U.S. firms, he said.
Although that's counterintutiive, he said 30 years of merger data show that "companies want to be where capital will have the best return.
He expects that M&A activity to take place in sectors like industrials, health care and materials