Tom Lee's New *BOMBSHELL* Prediction.. (Stocks just Bottomed)

Holy smokes, Tom Lee just dropped a massive prediction for investors. He actually says that today may have been the bottom for September. He says September could be a very strong month. This is information that you need to know as soon as possible because while I've disagreed with Tom Lee on some things in the past, I do generally agree with his thought process here. And we will talk about some of this after you hear from Tom Lee. Ladies and gentlemen, the only thing that I ask for in these videos is that you hit the like button for the YouTube algorithm to help push this video out to more people that need to see it because they will make money from it. Let's not gatekeep that information. Take a listen to what Tom Lee just said this evening. Will September play true to history or is there enough momentum in this market to keep stocks climbing? Let's ask Tom Lee. He is Funst Strat's head of research. He's a CNBC contributor and he's back at Post 9. Welcome back. >> Great to see you, sir. >> Good to have you with this month that's now upon us. How are you feeling? >> Well, um I know people are edging into September cautious because markets are down, oil's up, yields are up, and people are talking about the seasonality. I'm going to be contrarian. I think this is a setup for actually September to be a strong month for stocks. >> Why? Well, I think one is that the inflation fears are likely to quell this month. We have the jobs report to on Friday. Next week is August CPI and then we have of course the FOMC rate decision in September. I think the sequence of those events is going to show inflation is weakening and I think the odds of September hike might actually drop to zero. >> I mean, you thought that August we could get to 79 or or 8,000 in August alone. Yeah, we obviously did not. So are you overly are you too optimistic about this market ignoring some of the challenges that you did mention inflation, higher rates, higher oil, uh you know more hostilities in the Middle East among other issues around the AI trade, data centers etc. >> Yeah. And of course um it makes sense to be worried about these things, but 79 800 8,000 to me should be a level where investors are bullish. Like that's really when markets top is are people are bullish. you know the these highs were made in August when people are cautious and people are cautious here. So to me I think there's a wall of worry here that actually should be buyable. I mean war concerns as you know have historically been buying opportunities and the AI trade still has a lot of strengthening fundament it is interesting to me that you do have now a growing chorus of caution. >> Yes. >> From many different corners Citadel Security Scott Rubner I highlighted a lot of this on halftime. I'm going to do it again because he says the near-term riskreward has changed. And he points out say earnings were great, but they're gone now. They're they're behind us. Retail remains a buyer, but historically they become smaller in September. Systematic exposure has rebuilt. The corporate bid is going to fade. Blackout windows come back, so he can't do the buybacks. And then after a significant collapse in volatility, now that's behind us, too. He says he would use strength to reduce exposure and add inexpensive protection. Goes on to say not looking for a broader bearish turn but a tactical reset. What do you make of that? Uh those are all valid points. If what's interesting is I think that described a lot of the crypto trade last month. You know V was down retail was smaller and we had a violent 30% rally. Crypto, believe it or not, has historically led the S&P by roughly a month. So, I I think the setup is very similar for equities. I mean, in fact, the bottom might even be today for equities. But >> you think that the the the crypto rebound could have been for for a lot of different reasons. Intervention by the Treasury Secretary in the bond market, you know, calls attention to a higher degree to, you know, $40 trillion deficit, that that whole deal. So why do you think that what may have been a singular moment actually actually has legs? >> Well, I think that when I look at the stock market today, I think one of the most loudest things people talk about is inflation and uh the fact that inflation's been sticky. You know, we wrote about this last night that you know when the Fed has Fed studies have shown the core PCE might have a flaw in it because of quote the impact from software accessories which is flash memory. It's accounting for a third of all the inflation, excess inflation this year. But most people in their lives don't have flash memory inflation. >> No, but they have g like gasoline tank inflation. >> Correct. So, and gasoline, you know, is unfortunately something the Fed can't control, but the other components of inflation seem to be in line. Core PCE, if you adjust it, is actually almost mirrored on top of CPI, which is 24. So, if we get a two-4 print next week on CPI, I think the market loses its anxiousness about inflation. Do you think people are getting too cautious too soon? I mean, because JP Morgan's trading desk, we're moving to tactically cautious, neutral view. Wells Fargo, we're turning cautious on equities. All these people are wrong. >> Well, as you know, they're probably not wrong, but when everyone turns cautious, that means consensus has priced in a cautious scenario. And unless the economy is about to inflect downwards, as you know, the cautiousness then creates stocks can go up on bad news. That's actually when the last seller sold, that's when markets rebound. We've talked a lot and every time I think you've been on recently this data center issue which is now bubbled up to the to the point of feels like a boil or on the verge of a pretty steady boil. >> What's the impact of that on the broader market do you think as September begins? >> It's a real issue because as as we talked about it's resonating with voters and we're seeing Republican governors siding with that and in supporting moratoriums. Um, I just think the AI industry needs to do a better job of explaining the benefits and I think that's I think they've gotten the message. It is creating jobs and it's creating benefits for users and of course it's strategically important for the US. So I think that this is definitely headline issues even into the midterms. But once that's behind us, I think the AI sort of return on investment story is what's important and those stocks will rebound. >> The first thing that I will say here is I agree with Tom Lee. I am a contrarian by nature. When people panic, I get greedy. When people get greedy, I start to pull back a little bit. Right? This is why and how we predicted the fall of AI hardware stocks back in early June. We I mean we predicted Micron to fall 50%. And it happened, right? Look, when everyone gets bearish at the same time for the same reason, you want to nine times out of 10 take the opposite side of that trade. And look, the fundamentals are strong. The economy, while it's not great, and a lot of average people are not doing well, the aggregate numbers for the economy, the numbers the market actually cares about, are just fine. And this is why I am fundamentally very bullish on the stock market, especially after the midterm election, because yes, like Tom Lee said, it's a real problem when politics are flipping against a trade, right? Um, look at green energy. I think this is a fantastic example. Under a Democratic presidency, green energy stocks are going to do phenomenal. Some of the best stocks to own. Solar off the charts. Okay. Republican president comes around, not as good. So, yes, these things can have an impact. Now, AI, this is so such a big contentious topic. I do think if some states ban data centers, there's going to be room in other states to build the data centers. I I think it's a sentimental problem at the end of the day, but it's a problem nonetheless sentimentally that could shake investors within the AI trade. So, if you're a headline index investor, you should be a little nervous about this, right? Because year-over-year EPS growth is about 25% this year. That's probably where we're going to end end off this year. About 25% year-over-year earnings growth. Most of that is coming from two stocks, Nvidia and Micron. Excluding Nvidia and Micron, EPS growth for the S&P year-over-year is going to fall to about 16%. Excluding the Goldman Sachs, JP Morgans, Morg Morgan Stanley, GE Veronova, and Eaton, S&P 500 growth falls to 12% year-over-year. That is still very strong. now. But if people start to push back on AI data centers even more if this becomes a more contentious topic heading into the midterms, yeah, AI data center stocks and hardware are are going to continue to sell off, right? That doesn't mean it has to crash the markets though. And I think we've seen that over the past couple of months where there has been this broadening. The markets have broadened out. There has been this rotation. You know, in the trading community, we are up 98% year-to date. Look at the last 3 months. Hardware stocks have really come under a lot of pressure. Our portfolio has been basically up and to the right. If you guys want to join that, that link is down below in the pinned comment of this video. Not a financial adviser, not a recommendation. You could lose money. Don't be a jackass. Okay? We are making large bets, high conviction investments in asymmetric opportunities wherever and whenever they are. That's why I would love to see a correction here. But you have to understand after the midterms, this is the historical performance of the S&P ever since 1930. Basically in October you bottom and then you skyrocket. Now this time around we got a lot of issues. AI hardware stocks have a lot of issues. Okay. There is politics around data centers which could pressure the headline growth for EPS of the S&P 500. That doesn't mean that everything would do poorly, just some of the larger waitings. It could put a little bit of a pressure on the index. If you're a stock picker, doesn't really matter. There's one caveat to all of this. And there's one big question mark here because let's say inflation comes in line with expectations next week or maybe even better than expected like Tom Lee says. What if the jobs report on Friday comes in not great? Sure, yes, you would in a normal market say, "Yeah, the Fed's not going to hike rates." But what's happening with oil right now? Oil is now over $90 a barrel. That's a problem. It's $91 a barrel. It is up another 1% here in overnight trading. So, the inflation report that we're going to get next week is for the last 30, 40 days. It was 40 days ago. Wall Street's like, "Oh my gosh, we have this inflation problem because the war with Iran." And that's the big caveat here. Again, yes, getting a low CPI report, getting a bad jobs report, those things would be great news for the markets at this point. But if the war with Iran continues or gets worse and oil goes even higher, it's going to put a pressure on the markets in some capacity and it might prevent the markets from doing what Tom Lee said. Yeah, in a normal market, better than expected inflation, worse than expected jobs report, no Fed hike, but what if oil's $98 a barrel by Friday? That's a problem. I do think though you want to be buying whatever weakness we get. You do want to be a buyer of that, right? You don't want to fade that. You don't want to get scared here. You want to embrace it and look for opportunity because at the end of the day, you know, the Iran war will pass. Like I feel like I have like a like a talent almost. I can put myself in other people's shoes incredibly well. Maybe it's because I I've lived through a lot or whatever the case is, but if if I was Trump right now, I would want to get gas prices lower before the midterms, I would want to avoid a Fed rate hike because of the Iran war. And because I'm very market conscious and I understand how the stock market going down affects the economy and polling and politics, I would want to prevent the stock market from crashing right before the midterms. mean that if I was Trump, I would want to end the conflict with Iran, make it look like I won or just win the conflict or whatever and get it over with. I don't know if that's going to going to happen or not, but that's what I would do. Now, the NASDAQ is currently down about 5.3% from all-time highs. You've already fallen like half of a correction. So, it wouldn't surprise me if the bottom is coming here soon, especially if we get good news on Iran. would not surprise me at all because a lot of people are bearish. A lot of people are shorting the markets right now. There's a lot of event risk hedging. So basically, if you don't know what that is, we know the midterms are coming. So what does Wall Street do? They go out and hedge portfolios for it. Well, if your number one negative catalyst, which is the war with Iran, were to end or deescalate in some way, shape, or form, there's a lot of hedges and short positions that would be covered quickly. But again, regardless of what happens over the next four or eight weeks, you want to be a buyer of that. And if you're an investor like me and you're taking a 1 to threeyear time horizon with the the investments that that you're making, right, you obviously want to see them double in 3 months. But if if you're picking stocks, you know, with the idea of they're going to triple or 5x or 10x over the next two to three years, you should welcome this opportunity. You should want a correction right now. I am sorry for anyone that does not want to hear this. I want a correction right now. I know it sounds really bad and the portfolio is up 98% year to date. I don't want to watch all of those gains get evaporated, but I do want to see a correction because I do want to go shopping because I know what's on the other side of the quote unquote rainbow. It's a literal pot of gold and if the markets are going to panic, I'm going to take advantage of that. But Tom Lee does have really good points he made in this video. Everyone is flipping to be a bear. Every time that happens, you want to be a buyer. And the last thing I will leave you off with in this video, if if you made it to the end of the video, um there is a new AI trade starting and I've talked about this a lot on the channel. If you guys have no idea what I'm talking about, you definitely want to hit that subscribe button so you guys don't miss opportunities like this. But it is robotics, automation, AI software and cyber security. Those are the areas as hardware stocks begin to lose their shine, lose their momentum, lose the investor FOMO, those are the areas that are going to outperform. Yes, I sounds crazy, right? AI software, cyber security, robotics, and automation. Think about the companies that are bringing AI to the real world. Yes, there are companies that are doing that. A company called Zebra Technologies is literally bringing AI to the physical world and like they're doing this right now. The company trades with a PEG ratio of 0.5. Yeah. Insane, right? Look into that stock. Might uh hold some gems that you might like. Apploving trades with a PEG ratio of 0.5 growing 53 54% revenue growth. EPS growing at like 80%. Stupid low PEG ratios. You got to be a dummy not to take advantage of opportunities like that. I'm not a financial adviser. I'm not a financial planner. It's not a recommendation. Of course, it's my thought process. That's what I would tell my bud if he's uh if he was an investor. So, I love taking advantage of when people get scared and emotional. It's my favorite pastime. You know, it's it's it's how you turn a good investment into a great investment. You make money when you buy a great stock at a stupid low price. That is how you win in the markets. It's as simple as that. Most people do the opposite. It's human nature, you know? I don't blame you. I've been there before, right? have sold stocks at the lows. But, you know, with a clear setup like this, whether or not Tom Lee is right or not, really beyond the point, we are likely going to have a very strong at least uh first three quarters or so of 2027, historically speaking, and I think we're shaping up to do so again. I will be a firm buyer of any weakness that we do get in the month of September or the first half of October. really always I'm a firm buyer especially when there's volatility but nonetheless it will be amplified this time around I will be taking advantage of the opportunities that are presented but Tom Lee does have a lot of good points there right I was actually thinking the same like everyone's kind of getting bearish today a lot of bearish notes out today and that's usually when things tend to get a lot better so I don't know do what you guys want with this information it is not a recommendation it is not financial advice advice. I am a very aggressive investor and we that's that's how we do what we do, right? If you guys want to come trade and invest alongside of us, that link is down below in the comment section. It is the pinned comment down there. Hit the like button as well as subscribe to the channel on your way out. Have a great rest of your day and I will see you in the next