Tom Lee Sees Markets Strong Through Year-End

Fundstrat's Tom Lee argues stocks may be near a bottom as broader participation, lower yields, and defensive positioning shape the outlook.

Updated on Nov. 2, 2026 in Investing

Tom Lee Sees Markets Strong Through Year-End

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Tom Lee expects markets to remain strong through year-end 2026, pointing to a rising equal-weight S&P 500 even as the headline index fell. He says stocks may be close to a bottom.

Why it matters

Lee's outlook draws on lower Treasury yields, lower oil prices, defensive fund positioning, and cautious sentiment, which he reads as conditions that could support a rebound. Investors weighing portfolio positioning for the remainder of 2026 are watching such calls closely.

The equal-weight S&P 500 rose while the headline index declined, and Treasury yields and oil prices both moved lower. The extraction does not quantify the size of these moves or the valuation levels Lee cites as reasonable.

The players

Tom Lee

Tom Lee is a prominent Wall Street strategist and co-founder of Fundstrat Global Advisors who is known for his bullish market forecasts.

The details

Lee cites broader market participation, lower Treasury yields and oil prices, defensive fund positioning, cautious investor sentiment, and crypto resilience following a security breach at Binance. He also points to the U.S. midterm election cycle and reasonable valuations alongside strong fundamentals as supporting his view.

November 2, 2026: Tom Lee's market outlook is published.
Through year-end 2026: Lee expects markets to remain strong.

Market Dynamics

The rise of the equal-weight S&P 500 against a falling headline index reflects a breadth divergence that Lee treats as an early signal of recovery. Such gaps between cap-weighted and equal-weight performance have historically been watched as indicators of how widely gains are spreading across the market.

Investors weighing whether to add equity exposure may consider how breadth, Treasury yields, and oil prices factor into their allocations for the rest of 2026. Lee's view is a single strategist's projection and does not guarantee market direction.

The takeaway

Broader market participation and falling yields are conditions strategists watch when assessing whether a market has reached a bottom. Investors should weigh any single outlook against their own risk tolerance and time horizon before adjusting positions.