"We should see relative performance of stocks versus what we call tail assets. In other words, if stocks begin to outperform gold; stocks versus oil; we know investors are starting to believe this."
On Treasury yields moving lower (10-year went from 3.77% to almost 3.25%).
"It just shows you the Treasury market is a lot more than just about QE, *because I think everyone was thinking Treasuries (yields?) would back up because of QE (*double check this). But, you know what? Maybe a lot of it is discounted. It is really hard to tell what the 10-year is telling us. I would just tell you, I'm worried if the 10-year is at 4.5 to 5.0%; that would really destroy the case for stocks."
Mr. Lee believes we are in a structural bull market. I thought we were in a cyclical bull market?
"It's been a very tough market. Remember people have been kind of bearish on this; they've been wanting to sell every rally here and it's been hard to embrace this as a secular bull market" (does this mean the Dow won't hit Charles Nenner's target of 5,000 in 2013?)
SPX 1475 2011 Target, 1,250 Low (FreeStockCharts)
A few weeks ago Lee said the S&P will not breach the 1,250 low this year. I embedded that video as well. If you look at the chart to your left, 1,475 looks possible if the S&P were to rise to the vertex point of the 2-year wedge. By the way, ever since the market bottomed in March 2009, Tom Lee's S&P targets have been spot on.
✓ JP Morgan's Tom Lee: S&P Target 1,300, 14.5x 2011 $90 Earnings By Year End - June 15, 2010
✓ JP Morgan's Thomas Lee on 2010: S&P Will Hit 1300, Cyclicals.. - December 16, 2009
✓ JP Morgan's Lee Sees Recovery, S&P Target 1,100" - June 17, 2009
JPMorgan's Lee Interview on Stock Market Outlook, May 2, 2011 (Bloomberg.com)
JPMorgan's Lee Interview on Stock Market Outlook, March 28, 2011 (Bloomberg.com)