Equity Bull Market ‘Still Intact and in Very Good Shape,’ Says Fundstrat’s Tom Lee – Here’s Why

Fundstrat managing partner Tom Lee says last week’s stock market pullback is a “false narrative” about the health of the bull market — and he is urging investors not to read too much into the volatility.

Lee, a CNBC contributor, made the remarks Monday on “Power Lunch” after markets sold off sharply Friday before rebounding early in the week’s session.

According to Lee:

“I think it’s a false narrative to think the bull market is in trouble. I think the bull market is still intact and in very good shape.”

Lee identified three drivers of last week’s jitters: concerns about the AI trade following Broadcom’s earnings guidance; the sheer scale of equity capital being raised by tech companies, including Google ($80 billion), SpaceX ($75 billion), OpenAI (potentially $100 billion), Anthropic ($75 billion), and Meta; and ongoing geopolitical tensions.

He also addressed the theory that the SpaceX IPO, expected around June 12, could mark a market top. While Lee acknowledged that “a very large camp” of institutional clients holds that view, he called it “misplaced concerns,” arguing it is “actually rare a big IPO marks a top.”

Lee noted $7 trillion remains in cash on the sidelines and that IPO demand has already been strong.

“I think the market’s going to not only absorb this IPO really well, but I think the market’s going to do well post IPO.”

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