×

Strategist Tom Lee: Unpopular presidents 'don't translate into bad markets'

Looking at 116 years of political power changes and contested elections, Fundstrat Global Advisors Founder Tom Lee found that a president's popularity typically has little effect on stock performance, contrary to popular belief.

A study published last Friday by Lee's firm showed that "presidents who are not popular, even initially, don't translate into bad markets, necessarily," the strategist told CNBC's "Fast Money Halftime Report" on Monday.

Though the consensus view is that in the case of a Donald Trump victory the market will experience a sell-off, Lee instead believes that regardless of who wins, U.S. markets are actually oversold and are poised for a rally.

"I would say it's actually bullish if we end up seeing a relief rally and it really engages investors and we see capital put back to work," Lee said, adhering to the view that prevailing trends matter more than quick selling streaks spurred by pre-election jitters.

And, unless the election is somehow contested, Lee remains as bullish looking forward.

The strategist said it is still possible for the S&P 500 index to rally 10 percent from where it currently stands at $2,127.38 as of Monday afternoon and possibly even exceed $2,300 in the months after the election.