The market landscape shows a majority of investors are confused after the U.K. vote to leave the European Union, but Tom Lee, co-founder of Fundstrat Global Advisors, said Tuesday that this may not be a bad thing.
"I think it shows that maybe the markets are a lot less invested than people think. My takeaway is that there's a lot more cash on the sidelines," Lee told CNBC's "Squawk Box." "That's why we had a huge sell-off and we were able to recover most of that decline."
U.S. stocks have reclaimed more than 90 percent of their post-Brexit losses, and are flirting once again with all-time highs. However, sovereign bond rates across the globe have also fallen sharply since the June 23 vote.
"That's what's scratching heads, because the equities market is telling us that the damage is limited, but then we're left with lower interest rates. I think investors are kind of confused at the moment," Lee said.