Tom Lee Predicts the S&P 500 Will Soar 10% in 2025. Here's the Best Way to Benefit.
The S&P 500 index, after two years of double-digit gains, has experienced some rocky times in recent months. Investors' concerns about how President Donald Trump's import tariffs may affect the economy and corporate earnings weighed heavily on the index in March and April, even briefly pushing it into a bear market. If tariff levels are high, they could result in rising prices -- and therefore costs -- for companies and individuals.But Trump's recent initial trade deals with the U.K. and China offered investors hope that tariffs will be manageable, and that's helped the S&P 500 regain a significant amount of territory. The major benchmark has climbed 20% since its low in April.Tom Lee, Fundstrat managing partner, has stuck with his prediction for S&P 500 gains for the full year and now says, with companies showing strength in recent times, he's even more confident the index will reach his forecast. Lee's forecast of 6,600 implies a 10% climb from the index's closing level on June 3.Continue reading
The S&P 500 index, after two years of double-digit gains, has experienced some rocky times in recent months. Investors' concerns about how President Donald Trump's import tariffs may affect the economy and corporate earnings weighed heavily on the index in March and April, even briefly pushing it into a bear market. If tariff levels are high, they could result in rising prices -- and therefore costs -- for companies and individuals.
But Trump's recent initial trade deals with the U.K. and China offered investors hope that tariffs will be manageable, and that's helped the S&P 500 regain a significant amount of territory. The major benchmark has climbed 20% since its low in April.
Tom Lee, Fundstrat managing partner, has stuck with his prediction for S&P 500 gains for the full year and now says, with companies showing strength in recent times, he's even more confident the index will reach his forecast. Lee's forecast of 6,600 implies a 10% climb from the index's closing level on June 3.
