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Lee cites declining margin debt and a dovish Fed as key resons to be bullish on stocks. "We really haven't seen tops until margin debt actually starts to really rollover," Lee said. That "firepower" refers to the fact that FINRA margin debt declined in August to $797 billion, well below its October 2021 peak of $936 billion. AdvertisementThe S&P 500 surged 14% in the first half of 2024, putting this into play. The data shows that since 1950, the S&P 500 has delivered an average second-half gain of 9.8% under such circumstances, with an 83% win ratio.
Persons: Fundstrat's Tom Lee, Lee, , Tom Lee, there's, Lee crunched, Volcker Organizations: Fed, Service, Federal Reserve
Investors should buy stocks ahead of next week's May jobs report, according to Fundstrat's Tom Lee. "We see high probability that stocks perform well into next week's May jobs report," Lee said. AdvertisementInvestors should buy the dip in stocks ahead of next week's release of the May jobs report, according to a Friday note from Fundstrat's Tom Lee. "Thus, we see high probability that stocks perform well into next week's May jobs report," Lee said. Such a report would match the April jobs report and likely put some pressure on the Fed to cut interest rates sooner than later.
Persons: Tom Lee, Lee, Organizations: Service, Nasdaq, Dow Jones, PCE, Housing
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