JPMorgan's Tom Lee Doesn't Like How Everyone Else Is Turning Bullish On Stocks

JPMorgan's Chief US Equity Strategist Tom Lee is known on Wall Street for his typically bullish outlook on the stock market.

Lately, however, his views on where the S&P 500 is headed from here haven't been as sanguine as usual.

In his outlook for 2013, published in early December, Lee  wrote, " We see risks building in 1H and, thus, expect the S&P 500 to be range-bound in 1H13 with a mid-year target of less than 1400," before predicting that the index would eventually appreciate to 1580 by the end of the year.

Today, S&P 500 futures are trading around 1457. In other words, Lee forecasts stocks will go down before they go up.

Now, in his latest note, Lee tells clients not to get sucked into the growing consensus view that stocks are going higher (emphasis added):

Our baseline for 2013 remains that of a tricky 1H, with strength to start (and as we mentioned in earlier notes, we see a move toward 1500) but followed by a correction that sees 1350 before midyear. This is a contrarian view on timing—we are seeing a growing chorus of investors who see stocks strong throughout 2013. In fact, even notable bears have turned “bullish” on equities in 2013. We do not view this as a sign of “ringing the top”; rather, it is a reminder that investors need to be mindful of consensus and risks to the consensus view.

Lee writes that although the global economy appears to be on the mend. However, as a final caution, he warns: " Bottom line: Stay constructive but wary as we approach 1500 or so."

MORE: JP Morgan's Tom Lee Is Really Close To Making A Bunch Of People Look Really Stupid >



More From Business Insider
Loading...
 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.2575-0.0006-0.05%
    USDSGD=X
    1.7397-0.0005-0.03%
    EURSGD=X
    2.1137-0.00010.00%
    GBPSGD=X
    81.2914-0.00070.00%
    SGDJPY=X
    6.1660+0.0034+0.05%
    SGDHKD=X
    2.6004+0.002+0.08%
    SGDMYR=X
    9,230.8682-25.1582-0.27%
    SGDIDR=X
    4.9740+0.0071+0.14%
    SGDCNY=X
    1.1662+0.001+0.08%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,293.50+2.90+0.22%
    GCM14.CMX
    19.57-0.12-0.62%
    SIK14.CMX
    91.62-1.25-1.35%
    ^XAU
    3.11-0.01-0.29%
    HGK14.CMX
    101.40-0.54-0.53%
    CLM14.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.74+0.03
    ^FVX
    2.690.00
    ^TNX
    3.460.00
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    2.22+0.010+0.45%
    JS8.SI
    0.121-0.002-1.63%
    B22.SI
    1.16+0.010+0.87%
    U6C.SI
    1.275+0.060+4.94%
    S53.SI
    1.335-0.020-1.48%
    G13.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.21+0.020+10.53%
    F86.SI
    0.167+0.015+9.87%
    5HH.SI
    0.116+0.010+9.43%
    O2I.SI
    0.72+0.050+7.46%
    5DP.SI
    1.315+0.084+6.82%
    O9A.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.145-0.009-5.84%
    5GD.SI
    0.15-0.009-5.66%
    5EL.SI
    0.151-0.009-5.63%
    A03.SI
    0.30-0.015-4.76%
    K29.SI
    1.05-0.050-4.55%
    T14.SI