CPI - Fundstrat's Tom Lee Encourages Investors to Seize Market Dip Amid Inflation Concerns June Rate Cut Remains Feasible | Benzinga
In the wake of a market sell-off triggered by the inflation report, investors are being urged to buy stocks, with Fundstrat suggesting a potential June rate cut is still on the table.
What Happened: Fundstrat’s Tom Lee has advised investors to take advantage of the market downturn following the inflation-induced sell-off, as reported by Business Insider. Lee interprets the March CPI report as a sign of ongoing disinflation, making the market dip a buyable event.
“Believe it or not, this was actually a very good CPI report. And I think that’s why the stocks, which sold off today, will ultimately get bought,” Lee said in a video to clients on Wednesday.
Lee pointed out that the primary cause of inflation in March was an increase in auto insurance prices, a residual effect of the pandemic-induced surge in auto prices. He stated, “This hotter CPI number was due to auto insurance, almost solely. So, it just tells you that this is a timing issue, it’s not structural.”
Despite dwindling probabilities, Lee still believes ...