Hook
More breakout videos from this creator.
market crash near term... here's what you need to know Wall Street's Tom Lee just correctly predicted that the S&P 500 would hit $7,500 by August this year. Now he believes that the stock market could go above $8,000 by year end, leading into a generational bull run in 2027. But he's also warning that a major correction could happen first. And here's why I think both could be true and how I'm investing around it. First, the S&P 500 earnings increased approximately 50% year over year last quarter. And analysts expect a 13.6% growth in 2027, which could push the index above $10,000 valuation. Then there's the Federal Reserve. Interest rates could fall from around 3.7% right now to 3.1% as inflation potentially expands the rally into industries held back by expensive borrow. But the biggest catalyst for 2027 is AI. 2025 and 2026 were the years companies built the infrastructure, whereas 2027 is the year when those investments finally produce meaningful revenue, cost savings, and productivity gains. However, the path to getting higher probably won't be smooth. There's going to be a lot of higher volatility from the midterm elections, and conflict in the Middle East, and persistent inflation could all create volatility or even force the Federal Reserve to raise interest rates again. The VIX is also recently hit its lowest level of the year while the market was near all time highs. This suggests that very little fear is currently priced in. So what I'm currently doing is dollar cost averaging into my core positions while building cash towards 20 to even 30% of my portfolio. That keeps me invested if the rally continues, but also gives me cash to buy undervalued companies if the correction comes. If you're curious what stocks I buy, comment "2027" below and I'll send my complete portfolio trade alerts for free.