Stocks Tank After Fed Rate Outlook, But Expert Says 'Buy the Dip'

  • 📰 CNBC
  • ⏱ Reading Time:
  • 43 sec. here
  • 7 min. at publisher
  • 📊 Quality Score:
  • News: 38%
  • Publisher: 72%

BUSINESS 뉴스

FEDERAL RESERVE,RATE OUTLOOK,STOCK MARKET

Following a disappointing rate outlook from the Federal Reserve, stocks experienced a significant drop. However, Tom Lee from Fundstrat Global Advisors urges investors not to panic, arguing that the market downturn will be short-lived and presents a buying opportunity.

Stocks plummeted following the Federal Reserve's unexpected rate outlook Wednesday, but Tom Lee, head of research at Fundstrat Global Advisors, believes investors shouldn't panic. Equities took a nosedive after the U.S. central bank's revised 2025 outlook signaled a more hawkish stance with two fewer rate cuts than previously anticipated. Lee remains optimistic, stating, 'This panicked reaction will be short lived. This was a painful day, but the fundamentals did not change.

This is why we see this as a 'back up the truck' moment.' He cites several reasons for his confidence: the CBOE Volatility Index surged 74% on Wednesday, its second-largest jump ever, historically followed by full stock market recoveries within a month. Additionally, the S&P 500 is testing its 50-day moving average, a level where it previously rallied in 2024. Lee also notes that despite the Fed's hawkish commentary, investors perceive the central bank as still dovish, albeit with less clarity for the new year. 'In other words, the Fed remains supportive of markets,' Lee wrote. 'We see this more as the Fed wanting to 'take it slower.'' Lee believes small- and mid-cap stocks are best positioned to benefit from this downturn, pointing to companies like BancFirst, Spotify, Carvana, and Shake Shack as particularly attractive investments

이 소식을 빠르게 읽을 수 있도록 요약했습니다. 뉴스에 관심이 있으시면 여기에서 전문을 읽으실 수 있습니다. 더 많은 것을 읽으십시오:

 /  🏆 12. in KR
 

귀하의 의견에 감사드립니다. 귀하의 의견은 검토 후 게시됩니다.

대한민국 최근 뉴스, 대한민국 헤드 라인

Similar News:다른 뉴스 소스에서 수집한 이와 유사한 뉴스 기사를 읽을 수도 있습니다.

Asia stocks rally on Fed cut bets; Aussie jumps on jobs dataAsia stocks rally on Fed cut bets; Aussie jumps on jobs data
출처: Investingcom - 🏆 450. / 53 더 많은 것을 읽으십시오 »

Asia stocks fall ahead of Fed meet, China shares slump as CEWC updates disappointAsia stocks fall ahead of Fed meet, China shares slump as CEWC updates disappoint
출처: Investingcom - 🏆 450. / 53 더 많은 것을 읽으십시오 »

Fed rate view in focus as robust stocks year draws to closeFed rate view in focus as robust stocks year draws to close
출처: Investingcom - 🏆 450. / 53 더 많은 것을 읽으십시오 »

Asia stocks fall ahead of US Fed rate decision, China shares drop on weak dataAsia stocks fall ahead of US Fed rate decision, China shares drop on weak data
출처: Investingcom - 🏆 450. / 53 더 많은 것을 읽으십시오 »