S&P 500 Primed to Hit Record High, Though Pullback May Follow
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The S&P 500 is on the verge of hitting a new record high, likely in January according to Tom Lee of Fundstrat.
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However, Lee sees a potential 2-5% pullback in February-March before the market resumes its rally.
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Lee cites 4 reasons for the possible near-term pullback uncertainty about Fed rate cuts, AI hacks delaying tech growth, overbought conditions, and election year seasonality.
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Still, Lee expects the S&P 500 to reach 5,200 by end of 2024, driven by Fed easing, better economy, and housing rebound.
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Small caps specifically could jump 50% in 2023 courtesy of falling rates, dovish Fed, improving economy and uptick in housing.