Tom Lee is changing his view on which stocks may lead the market's next leg higher

Thomas Lee, Fundstrat Global Advisors
Scott Mlyn | CNBC

The recent decline in interest rates means that investors should shift shift some of their portfolio for the near term, according to Fundstrat's Tom Lee.

The 10-year Treasury yield was trading under 1.5% on Friday despite a 5% rise in inflation last month from a year earlier. The yield spiked above 1.7% earlier this year, which led to concerns about the direction for growth stocks as higher rates could raise costs for companies and expose high valuations in the sector.

Lee, who gained a large following in 2020 for his analysis of the pandemic and his related market calls, said in a client note on Friday that the retreat in interest rates means that some of the sector trends in the market from earlier this year should reverse in the weeks ahead.

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