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Fed ‘Has the Market's Back,’ Says Tom Lee Who Urges Buy the Dip

  • Bonds, VIX diverging with S&P 500 means selloff is ending
  • U.S. stocks heading for the worst month of this bull market
Bloomberg business news
Market Raises Concerns That the Fed May Be Making a Mistake
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Investors should take advantage of the worst monthly equity selloff in this bull market to position for a year-end rally as fears over Federal Reserve hawkishness are likely overdone, says Tom Lee, head of research at Fundstrat Global Advisors.

While catalysts cited behind the rout ranged from peak earnings growth to trade tensions with China and midterm elections, a key trigger came from the bond market. Bond yields spiked and stocks fell as recent comments from Fed officials suggested they’re willing to raise interest rates above neutral, or to levels that neither hold back nor spur economic growth.