Tom Lee Buys Tech Stocks Amid Market Dip

The Fundstrat manager is increasing allocations to technology equities following a recent decline in the GRNY ETF.

Updated on Oct. 27, 2026 in Investing

Isometric editorial illustration of a singular, solid steel geometric plinth in a void, symbolizing structural financial stability and market investment. — Fundstrat manager Tom Lee is purchasing technology equities for the GRNY ETF, citing macroeconomic shifts and the long-term potential of AI. AI Illustration. Upload story photo >

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Fundstrat manager Tom Lee is capitalizing on current market volatility by purchasing technology equities. This move follows a 5.44% weekly decline in the Fundstrat Granny Shots US Large Cap ETF.

Why it matters

Lee views the current market as a coiled spring driven by macroeconomic shifts and believes in the long-term potential of AI investments, citing factors like productivity gains and supply constraints.

The GRNY ETF price dropped from $28.45 on Oct. 9 to $26.90 on Oct. 23. Market participants are also monitoring a 67% probability of a December Federal Reserve rate hike.

The players

Tom Lee

He is the manager of the Fundstrat Granny Shots US Large Cap ETF.

The details

Lee continues to manage the Granny Shots ETF suite, allocating capital toward technology equities during market downturns. He draws historical parallels to the volatility experienced by Cisco Systems Inc. in 1997 prior to its subsequent rally.

In 1997, Cisco Systems Inc. stock fell 40% before a later rally.
The GRNY ETF price was $28.45 on Oct. 9, 2026.
Lee updated his portfolio management views during the week of Oct. 19, 2026.
The GRNY ETF price was $26.90 on Oct. 23, 2026.
The S&P 500 is projected to reach 8,400 by year-end 2026.

Market Dynamics

This strategy reflects broader macroeconomic shifts where investors seek to navigate Federal Reserve policy trajectories and AI-driven growth. It mirrors historical cycles where temporary sector corrections precede significant market rallies.

Retail investors holding tech-heavy portfolios may experience continued volatility as the market reacts to shifting interest rate probabilities. Long-term strategy remains tied to the S&P 500 performance, which currently tracks ahead of the GRNY ETF year-to-date.

The takeaway

Investors often look to historical precedents like the 1997 tech cycle when deciding how to handle current market corrections. Keeping a long-term perspective on portfolio allocations can help mitigate the stress of short-term price fluctuations.