Investor Tom Lee believes stocks could react similarly to tariffs in 2018, despite differences in the economic picture and market structure. The head of research at Fundstrat Global Advisors sees the current situation as an advantageous backdrop for equity markets due to accommodative monetary policy and tariff resolution potential.
Lee notes that investors are on edge waiting for President Trump’s clarity on tariffs, similar to 2025 and 2018. However, this time around, the Fed is contemplating rate cuts instead of hikes, which could impact the market. Market technicals also look better, with the S&P 500 above its 50-day moving average.
Lee points out that pricing suggests short-term damage from tariffs, but long-term resilience and recovery are more likely. Futures tracking the Cboe Volatility Index fear gauge indicate a rise around the April 2 tariff deadline but then decline afterwards.
While risks remain, especially related to tariff terms, Lee believes the weight of evidence favors market resilience and recovery, driven by monetary policy support and constructive technicals.
Source: https://www.cnbc.com/2025/03/21/tom-lee-says-market-ultimately-will-rebound-from-tariff-scare-as-in-2018.html