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Strategist Lee: Market to fall the rest of the year, but FANG stocks will outperform

Tom Lee
Adam Jeffery | CNBC
Tom Lee

Fundstrat's Tom Lee reiterated his call for a market pullback, but remained bullish on FANG stocks due to their "astounding" growth rates.

FANG is an acronym created by CNBC's Jim Cramer for a basket of high-growth technology stocks — Facebook, Amazon, Netflix and Alphabet (formerly known as Google).

"The S&P 500 has been performing considerably above our base case so far in 2017 … The reason we have been more cautious is that these expectations are diverging from fixed income and credit markets where flattening curve (10Y vs 30Y and even 10Y vs 2Y) and widening HY [high yield] spreads … signal a more cautious growth outlook," Lee wrote in a note to clients Friday. I "still like FANG" stocks.