Tom Lee’s Assessment of Market Stability
Tom Lee, head of the Fundstrat Research team, assessed the likelihood of market stability being restored soon. Based on historical data and current market behaviors, Lee indicated that a recovery in the stock market following April 2nd is highly probable.
April 2, 2025 Surge
Lee mentioned that investors experienced panic periods largely throughout this year. He emphasized that the drop in investor sentiment and the increase in the volatility index reflected similar scenarios concerning market fluctuations.
The expert cited the VIX spike in February 2018 as an example of collapsing investor sentiment and declining consumer confidence. He noted that the downturn during that period marked the first significant low of the year. Additionally, he pointed out the $850 billion cash increase in money markets and the historical impact of tax reforms on the stock market. Lee asserts that a resurgence is likely to trigger soon.
Cryptocurrencies Might Rise
According to Tom Lee, the effects of the recent panic period have begun to diminish. When evaluating investor behaviors in light of similar historical examples, a short-term recovery process in the stock market is anticipated.
Tom Lee: “The increase in VIX, the drop in sentiment, and confidence mirror the panic phase of 2018. I believe these panic effects have largely materialized.”
Analyzing market movements based on technical analysis data forms the foundation of these predictions. If weaker figures are announced after excessive selling on April 2nd at 15:00, global trade war concerns may stabilize. This would indicate a reversal of the long-standing downturn for both the stock market and cryptocurrencies.
Observations suggest that stock movements might exhibit certain technical patterns. In addition to market data, economic indicators will also serve as crucial elements to monitor in the upcoming period.
