As conflicts in easter Europe escalates, don't worry about the selloff, stocks will bounce back
As conflicts in easter Europe escalates, don't worry about the selloff, stocks will bounce back
Wall Street bull Tom Lee of Fundstrat said on Wednesday, the day before the invasion of Ukraine happened, not to worry and not to sell during the panic. Lee said on Wednesday, ahead of the invasion, that stocks typically selloff into an invasion, and then recover. "We think any panic around Russia-Ukraine will be short-lived. And hence, we would not be sellers on this panic," Lee said Wednesday.
Lee is predicting stocks will be higher the second half of 2022. Lee, a well-known market bull, said there were a number of reasons to stay committed to the market despite the range of worries that are troubling investors
One is that markets often fall in the run-up to an invasion, then rally when the event actually occurs. Lee said a "buy the invasion" policy might therefore be appropriate. He said US companies have little exposure to Russia, and that falls in stock prices are due to fear and uncertainty rather than any fundamental impact on earnings from the situation.
Omicron worries waning down is another tailwind for the market and the economy.
