Stocks are rallying, and investors may be wondering if there’s more upside ahead. According to Tom Lee, managing partner of Fundstrat Global Advisors, the answer is “yes” in three areas. S & P 500 Lee said the S & P 500 has further upside into next year. He told ” Squawk Box Asia ” on Thursday that his target for the index heading into 2024 is 4,750 — or nearly 9% upside from Wednesday’s close. Lee said he believes that comments from the U.S. Federal Reserve meeting last week are giving stocks the “green light” to rally further. “Our view is that you want to be risk on this year,” he added. “And the reason we want you to be risk on is that we do think that we’re largely through the worst of this tightening cycle and we think inflationary pressures are easing pretty quickly.” And that will set the stage for earnings to outperform, he said. Bitcoin The price of bitcoin has seen some wild swings over the past couple of years. It soared to a record high of $69,000 in November 2021, but has since dived to levels just above $26,800. But bitcoin is set for better days ahead, according to Lee. He told CNBC’s ” Squawk Box Asia ” that the cryptocurrency could soar to as high as $200,000, according to a predictive model his firm uses. “The idea is that over the next five years, we should see another log function increase in the network value of bitcoin,” Lee said, referring to a metric the firm uses. “So it would triangulate to something like as much as 100,000 to 200,000.” Bitcoin is up nearly 62% year to date, according to Coin Metrics data, and has followed the performance of equities mostly for the past two years. Lee’s $100,000-$200,000 call would represent a potential upside of between 273% and over 600%. China Lee said his firm is also optimistic on Chinese stocks, and urged investors to start to take an overweight position on the country. “It’s a pretty tried and true rule for investors that when there’s policy easing, you want to be adding risk, and … it should lead to a meaningful move and would support a further breakout,” Lee said. China has been making a number of monetary policy easing moves lately, such as cutting a few key lending rates , as well as slashing deposit rates.
