Tom Lee on Market Reactions to Tariffs

Famous investor Tom Lee believes the equities market is reacting excessively to Trump Administration tariffs.

In a recent CNBC interview, Lee, co-founder and head of research at Fundstrat Global Advisors, stated that the U.S. Federal Reserve is positioned to cut rates as inflation measures ease. The likelihood of a Fed rate cut in May is increasing, with Polymarket betting suggesting a 33% chance of a 25 basis point cut within two months.

Lee also mentioned the existence of a “Trump put” in market dynamics:
> “Look at yesterday, Tesla’s down 15%, and on Truth Social Donald Trump talks about Tesla. So I think a put exists, we just don’t know the level when the White House intervenes.”

He sees attractive stock opportunities, particularly in companies that have experienced significant declines. However, Lee previously warned that Bitcoin (BTC) and other cryptocurrencies may also be affected by market volatility.
> “The work by our technical strategist Mark Newton shows Solana, Ethereum, and Bitcoin all have downsides. His downside target for Bitcoin is $62,000 by the end of March.”
Although he acknowledges Bitcoin’s trading challenges, Lee maintains that its long-term outlook remains positive.
> “Bitcoin was $100 10 years ago, so $60,000 is still a fantastic return… the trust around Bitcoin will grow over the next five years, increasingly viewed as a store of value like gold.”