Cuban missile crisis has a lesson in the stock market today as the next Trump tariffs can drive major rebounds, says the top Wall Street forecaster
- Stock market trajectory during Cuba’s missile crisis According to co-founders of FundStrat Global Advisors, it can provide a template for how investors will respond to President Donald Trump’s upcoming mutual tariffs. Tom Lee has a strong recent track record in stock market forecasting.
A overwhelming sense of fear has settled for investors to support the next tariff from President Donald Trump, but the Cuban missile crisis could provide a roadmap for a major rebound, said Wall Street’s top strategist.
Co-founder of FundStrat Global Advisors Tom Lee, Strong Recent Performance in Stock Market ForecastsI said Friday’s CNBC His clients expect punitive tariffs that will lead some economies to recession.
But Trump’s proposal He shows “flexibility” with mutual tariffsscheduled for April 2nd, which could indicate a less stringent approach that could cause relief.
“This seems like we can actually have a positive scenario with these tariffs. It’s either mutually agreed or it’s either a substantial thing to do with each other,” Lee said. “And I think it’ll set the stage for a much bigger recovery rally than we expected.”
He painted similarities between the Cuban missile crisis, which nearly caused a nuclear war between the US and the Soviet Union, causing the situation today.
The Cold War position was ultimately resolved by President John F. Kennedy and Soviet President Nikita Krushchev after agreeing to withdraw nuclear missiles from Turkey and Cuba respectively.
Lee noted that in October 1962, the US stock market bottomed down along the seven-day two-week crisis, recovering most of its losses before the actual resolution.
“So I think that’s a decent template for today,” he said.
On the other hand, I like top investors Cathy Wood Others on Wall Street are Recession warning. However, Lee argued that the market hasn’t signalled the market, saying investors are more paralyzed than pessimistic, and that large stock rallies after April 2 could even help cause a recession.
“One thing we need to keep in mind is that if this trade contract is accepted, it could actually be essentially blunting the entire future trade issue,” he added. “And that would actually make the US attractive again.”
Earlier this month, Lee provided a similarly bullish stock market outlook, Predict 10%-15% jumps This spring after the index, the escalation of the trade war hit the corrected territory with fear that it would kill growth.
A few days after his forecast, the stock continued to fall over the next few days, but then mounted a somewhat comeback.
After hitting the lowest on March 12th, the S&P 500 Nasdaq I climbed both of them by about 3%. After four consecutive declines last week, the stock earned its first weekly profit after four consecutive declines. We maintained a stable fee.
“There are increasing signs that we have actually established a trading bottom.” Lee said Thursday..
This story was originally introduced Fortune.com