Tom Lee — known for his prescient call of the 2020 market rebound — said to buy the dip after Friday's sell-off, which was sparked by fears of the omicron Covid-19 variant. The head of research at Fundstrat Global Advisors said stocks should bottom this week and begin a strong rally into year-end. "We would be aggressive buyers of this pullback," Lee said in a note Sunday. "As with the case for Beta and Delta variants, the 'bark' has proven worse than the bite in each of those precedent instances." The major averages sold off Friday, one of the least liquid market days, due to growing concerns about the omicron Covid variant. The Dow Jones Industrial Average experience its worst day since October 2020. Panic from policymakers resulted in many countries, including the U.S., imposing travel bans from southern Africa. Fear spurred the Cboe Volatility Index to spike more than 50%, its fourth-largest percent increase in 31 years, according to Fundstrat. Still, Lee thinks the carnage will be "short-lived and transitory," adding that: "The future is uncertain, but the probabilities favor a V-shaped rebound, starting this week." Lee expects stocks to bottom this week, with cyclical stocks leading the comeback. Into year-end, Lee recommends energy stocks, homebuilders, small-caps, epicenter stocks — which include those most impacted by the pandemic — and crypto equities. Here are some ETFs recommended by Lee. In the new year, Lee recommends investors buy industrials.
Tom Lee, Fundstrat Global Advisors
Scott Mlyn | CNBC
Tom Lee — known for his prescient call of the 2020 market rebound — said to buy the dip after Friday's sell-off, which was sparked by fears of the omicron Covid-19 variant.