Fundstrat Global Advisors' Tom Lee sees a slight pullback in stocks ahead, but he believes it presents a buying opportunity ahead of a year-end rally. The firm sees both technical and fundamental signals of a dip coming soon. Uncertainty surrounding Covid cases and President Joe Biden's nomination of the next Federal Reserve chair could inject some volatility into the market, according to Lee, managing partner at Fundstrat. "We could have a speed bump. Hopefully, it's not 5%," Lee said Wednesday on CNBC's "Halftime Report." The bullish investor still sees the S & P 500 reaching 4,800 or 4,850 by the end of the year, he told CNBC. "Our base case remains. … I think we exit the year strong. It would be a textbook pullback into a December rally," Lee said. "It actually ends up being a very buyable dip." The money manager warned some investors could respond too drastically to a slight pullback. "In this kind of market, especially so close to year-end, people just treat 2% drawdowns like it's an annihilation. There is a chance for people to overreact and that's why you need to buy that," Lee said. Lee said he is keeping an eye on areas of relative strength, as weakness develops in some sectors. "But for now, I think the market overall is healthy," he said.
Tom Lee, Fundstrat Global Advisors
Scott Mlyn | CNBC
Fundstrat Global Advisors' Tom Lee sees a slight pullback in stocks ahead, but he believes it presents a buying opportunity ahead of a year-end rally.