Two of Wall Street’s loudest voices said the same thing on Monday. Stay bullish. Tom Lee expects 2027 to be a banner year for stocks. Jim Cramer wants people buying Amazon on any dip.
July was ugly for stocks. But Lee says the selling came from one blown-up fund, not weak company profits. That gap drives his call.
Lee runs research at Fundstrat, a Wall Street firm. He expects August to be a recovery month. He sees the S&P 500 reaching 7,800. It sat near 7,605 on Monday.
Profit forecasts rose in June and July. Share prices did not. Lee calls that a coiled spring. This is not a new view. Fundstrat lifted its year-end target to 8,000 from 7,700 on June 24. Higher 2027 profits drove it.
July’s drop had one main cause. A fund called Situational Awareness borrowed heavily to bet on artificial intelligence (AI) stocks. When those stocks fell, it had to sell fast.
Former OpenAI researcher Leopold Aschenbrenner runs it. The fund shrank from about $45 billion to roughly $10 billion.
South Korea took the worst of it, because its market leans on SK Hynix and Samsung. Stocks there have since staged a Korean chip stock rebound.
“So I think 2027 could be one of the best years for the stock market,” Tom Lee, Fundstrat head of research, on CNBC.
Two worries fade by next year. SpaceX only listed in June, and early backers could not sell. That lock now lifts in stages. Up to 44% of its shares could hit the market by September.
The other is the Federal Reserve’s new head. Kevin Warsh took the oath on May 22. He has set US rates for barely 10 weeks.
Lee expects inflation to cool too. He points to falling house prices and slow wage growth. The data is mixed. Case-Shiller had April home prices up 0.8% in a year. Inflation ran at 3.8%.
In a post on Monday, Cramer pointed followers to his weekend column. He named one stock to buy on weakness.
“As you know from my piece this weekend, the one to buy on any downturn is Amazon…” he said.
Amazon just had a strong quarter. Its cloud arm made $42.23 billion in sales, up 37% in a year, per its filing. Analysts replied with Amazon price target hikes reaching $400.
Cramer likes stocks. He does not like Bitcoin (BTC). He says he will sell all of his. Price is not the reason.
Quantum computers are. These are new machines that could one day crack the maths guarding Bitcoin wallets.
IBM boss Arvind Krishna told him on CNBC to be paranoid within three to four years. Krishna sees quantum creating $1 trillion in value by the end of the 2030s. This Bitcoin quantum exposure analysis covers the timing.
BTC trades near $63,873 as of this writing, up 0.9% in a day.
Cramer has said this before. In December 2022 he announced he had dumped all his crypto. Bitcoin sat near $16,797 then. It is up about 259% since.
Friday’s jobs report will test Lee’s inflation view. Cramer’s track record makes his Bitcoin exit the call to watch.
The post Jim Cramer and Tom Lee Share a Bullish Call That Could Shape Investors’ Next Move appeared first on BeInCrypto.
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