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JPMorgan's Tom Lee: Bull stock market not getting respect

The stock market's bull run isn't getting the respect it deserves, JPMorgan's chief U.S. equity strategist, Tom Lee, said Monday.

"This is a bull market people don't like, don't respect," he said.

"I think individuals, especially high-net-worth individuals, have huge cash positions. I just think that right now stocks don't have any respect. I think there's a feeling that the best way to make money is through fixed income or real return instruments. And I think people are forgetting over time equities have been a great real return vehicle."

On CNBC's "Halftime Report," Lee said that there would be a market tilt toward cyclical stocks.

(Read more: S&P 500 heading to 1,820: Laszlo Birinyi)

"Some of the hedge funds are starting to increase their exposure to cyclical stocks, especially basic materials," he added, most likely providing a lift to those sectors ahead of the market.

Lee also made the case for stocks being cheap on a relative basis.

"The word 'bubble' has pretty negative connotations, and I think when we think about it for the stock market, it shouldn't be based on the price," he said. "It should be based on either P/E ratio or relative P/E, and by either measure, I don't think the stock market's anywhere close to a bubble."

(Read more: Don't miss out on the stock rally, John Rogers says)

Noting that the median price-earnings ratio for stocks is below 15 times, Lee added: "High yield is telling us that S&P's P/E should be 17 times right now, so we're still trading at a huge discount to where the high-yield market is. And in terms of econ growth, I don't see any evidence that we're peaking."

Citing low capital spending, pent-up demand and tight credit, Lee said, "These are not signs of an economy overheating, and I don't see how this leads to a stock market bubble."

Lee had a year-end price target for the S&P 500 of 1,775.

"I don't think 1,775 is going to be any obstacle for the market between now and year-end," he added.

By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

Trader disclosure: On Nov. 4, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Simon Baker is long AAPL; Simon Baker is long BAC; Simon Baker is long SBUX; Simon Baker is long FB; Simon Baker is long GOOG; Simon Baker is long AMZN; Simon Baker is long GPS; Simon Baker is long MU; Simon Baker is long LVS; Stephen Weiss is long EZU; Stephen Weiss is long AAMRQ; Stephen Weiss is long LCC; Stephen Weiss is long WLT; Stephen Weiss is long BTU; Stephen Weiss is short JCP; Pete Najarian is long stock AAPL; Pete Najarian is long calls C; Pete Najarian is long calls MS; Pete Najarian is long calls INTC; Pete Najarian is long calls YHOO; Pete Najarian is long calls SBUX; Pete Najarian is long calls FB; Pete Najarian is long calls MSFT; Pete Najarian is long calls MU; Pete Najarian is long calls CLF; Pete Najarian is long calls BTU; Joe Terranova is long VRTS.

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