Tom Lee says small cap stocks can outperform over next couple years by 100% on Trump policies

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The Fundstrat managing partner also sees the S&P 500 adding more than 12% in 2025.

Donald Trump's second presidency could help supercharge small cap stocks further, according to Fundstrat managing partner and head of research Tom Lee. "Since 1987 small caps traded on a median price-to-earnings at a premium basis to the S & P 500, and the S & P 500 is at 17 times. I think small caps could over the next couple of years outperform by more than 100%," Lee told CNBC's " Squawk Box " on Friday.

The latter implies a more than 12% rise from where the index closed on Thursday. Lee also views Trump's return to the White House as a continuing catalyst for bitcoin. "We know investors haven't been adding risk, and now we have earnings visibility with a continued dovish Fed and this election is behind us, so multiple tailwinds exist," he said.

 

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