With strong earnings reports from the FANG stocks on Thursday, coupled with the ongoing reopening of the US economy, earnings visibility is set to increase.
That will help drive the sharemarket to new record highs this year, says Fundstrat’s Tom Lee.
In an interview on Friday with CNBC’s Scott Wapner, Lee said that many investors are ignoring an upcoming binary event that has a high probability of success: a breakthrough in the development of a treatment or vaccine for COVID-19.
Lee said investors should have exposure to sectors that were hardest hit by the COVID-19 pandemic, because “in a world where there’s a vaccine or cure, they have got defendable businesses”.
Investors should prepare for new record highs in the sharemarket and have exposure to the FANG stocks and the so-called “epicentre” stocks, or companies that were hardest hit by the COVID-19 pandemic.
That’s according to Fundstrat’s Tom Lee, who said in an interview that Thursday’s blockbuster earnings reports from Facebook, Amazon, Apple, and Google-parent Alphabet, coupled with the ongoing reopening of the US economy, set the sharemarket up well for the rest of the year.
