Stock market outlook: 6 reasons why stocks bottomed in October and will rally

Tom Lee has growing confidence that the stock market already bottomed in October and is poised for more gains ahead.

In a Thursday note to clients, Lee made the case that investors remain too pessimistic and should get on board with the idea that a new bull market has started, especially given that equity valuations are not stretched. "Markets bottom before fundamentals 80% of the time and S&P 500 P/E is 15x ex-FAANG," Lee said."This is hardly expensive. In fact, among the most expensive sectors are defensives like Staples , Utilities , and Healthcare ."These are the six reasons why the stock market already bottomed in this bear market cycle and is poised to continue to rally towards Lee's 2023 year-end S&P 500 price target of 4,750, according to the note.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Verizon’s stock heads for best day in two years amid sharp rally in communications stocksVerizon Communications Inc.’s stock was headed for its best day in more than two years Thursday amid a rally in the communications sector. Verizon’s stock...
Source: MarketWatch - 🏆 3. / 97 Read more »

Here's why the stock market is having such a massive rally todayInvestors looked past what appeared to be a weak first-quarter GDP report on Thursday.
Source: CNBC - 🏆 12. / 72 Read more »

Fed pivot may not mean a stock market rally, says David RosenbergHistory shows that a pause in the rate-hike cycle doesn't guarantee a stock-market rally, according to Wall Street veteran David Rosenberg.
Source: MarketWatch - 🏆 3. / 97 Read more »

Stock market today: Meta's surge fuels big Wall Street rallyWall Street rallied to its best day since January after Meta Platforms became the latest Big Tech company to blow past profit forecasts.
Source: KPRC2 - 🏆 80. / 68 Read more »