- Trajectory of stock market during the Cuban missile crisis This could provide a template for investors to respond to the upcoming mutual tariffs of President Donald Trump, according to Fundstrat Global Advisors, co -founders Tom Lee, who has strong recent prognosis results in the stock market.
The stunning feeling of fear settled over the investors when they signed up for another Valva of President Donald Trump, but the Cuban missile crisis could offer a plan for a huge bounce, said the top strategist on Wall Street.
Fundstrat Global Advisors Cofounder Tom Lee who has Strong recent results of forecasts on stock marketsaid CNBC on Friday That his clients expect repressive tariffs that bring several economies to the recession.
But Trump's proposal on it Will show “flexibility” with their mutual tariffsthat are due 2. April, could indicate a less serious approach that could initiate a certain relief.
“It sounds that we could actually have a positive case with these tariffs, which is either mutually agreed or if it is possible for businesses,” Lee said. “And I think it could be prepared for a podium for a much larger regenerative rally than we expect.”
He drew a parallel between the Cuban missile crisis, which almost triggered a nuclear war between the US and the Soviet Union and today's situation.
Standoff of the Cold War was eventually resolved by President John F. Kennedy and the Soviet leader Nikita Khrushchevka after agreed to withdraw nuclear missiles from Turkey and Cuba.
Lee pointed out that the US stock market in October 1962 joined this two -week crisis for seven days into this two -week crisis and gained most of its losses before the real solution.
“So I think it's a decent template for today,” he said.
Meanwhile, as the best investors as Cathie Wood and others on Wall Street are Warning of recession. Lee, however, claimed that the market is not signaling one and says investors are more paralyzed than pessimistic and after 2 April, large rally after April 2 could help avert the decline.
“One of the things we need to keep in mind is this business agreement, if it is acceptable, it could actually basically dull the trade in the future,” he added. “And in fact, the US would make it more attractive again.”
At the beginning of this month, Lee offered a similarly bull view of the stock market, Laping a jump 10%-15% This spring, after the indices hit the correction area of fear that the growing trade war would kill growth.
The shares continued in the next few days after its prediction, but have since been mounted somewhat as a return.
After the 12th March hit the minimum, S&P 500 and Nasdaq They both climbed about 3%. Last week he also recorded shares that four consecutive drops recorded their first weekly profits maintained rates stable.
“There are growing signs that we actually created a tradable bottom,” Said Lee on Thursday.
This story was originally listed on Fortune.com
