Tom Lee: Retail investors will fuel this stock rally by re-entering markets following war panic

• Retail investors, initially cautious due to geopolitical events (e.g., 'Iran War'), are expected to re-enter the market, providing 'fuel in the tank' for a rally.
• Downside tail risks from the war are seen as removed, with hedge funds already adding risk.
• U.S. market fundamentals are strong, with rising earnings estimates and a strengthened relative position globally, particularly in tech, healthcare, and financial services.
• The U.S. stock market is viewed as a growth index, attractive to global investors, and its P/E multiple should expand.
• Anticipates an 18-24 month period of strong market performance following initial turbulence with a new Fed chair.

Fundstrat's Tom Lee predicts a continued stock market rally, fueled by retail investors re-entering the market after initial caution regarding geopolitical events. He highlights strong fundamentals in the U.S. economy and innovation, suggesting the U.S. market is poised for significant growth despite near-term turbulence. Lee believes the U.S. market will outperform, driven by earnings and multiple expansion.