After the Federal Reserve confirmed that it’s going to solely make two rate of interest cuts in 2025, shares shortly plummeted.
There have been two days the place panic gross sales acceleratedeven the primary US indices are within the purple within the final week.
However, Tom Lee said that buyers they need to not fear: «For us, this panic response will likely be short-lived.«.
The fact is that the Nasdaqhe S&P 500 and the Dow Jones They rose greater than 1.3% this Friday.
Despite the robust wave of gross sales, Lee clarified: «They have been painful days, however the fundamentals did not change«.
The director of analysis at Fundstrat Global Advisors admitted that the market took the Fed’s stance as considerably aggressive.
Although, for him, «the Fed continues to assist the markets. We see it extra as an try by the Fed to ‘take issues slower’”.
Actions that Tom Lee recommended
The knowledgeable considers that mid- and small-cap corporations would be the large winners of 2025 and selected 4 to bear in mind:
BankFirst (BANF): The regional financial institution’s securities have gathered a drop of 6% within the final month, however with a acquire to date this yr of 21.8%.
Spotify (SPOT): Shares of the music platform have had a terrific 2024, with a recorded improve of greater than 146%.
Carvana (CVNA): Although shares of the net used automobile market have plummeted 10% within the final week alone, they’ve gathered a wonderful improve of 321% to date this yr.
Shake Shack (SHAK): Finally there’s the hamburger chain, whose shares have soared 73.6% in 2024.
