According to Fundstrat’s Tom Lee, historical patterns suggest that April could be a strong month for stocks.
During a recent interview on CNBC, Lee stated that 90-95% of the market’s sell-offs related to the Iran war have likely already occurred.
“As March progressed, it became apparent that the war would not be short-lived, leading to market adjustments. While we are still uncertain about the war’s duration, historical data shows that the stock market tends to adapt quickly during major war events.
Typically, the stock market reaches a bottom within the first 10% of the entire war duration.”
Lee highlighted World War II as a significant reference point.
“World War II lasted almost five years, with the market hitting a bottom five months into the war. Despite the challenges faced in March, I believe a substantial adjustment has already taken place, presenting favorable risk/reward potential for stocks.”
The market strategist remains optimistic about the S&P 500 reaching 7,700 by the end of the year, despite the challenging start to 2026.
Currently, the leading index is at 6,604.85, showing a 3.15% increase in the past five days but a 3.82% decrease year-to-date.
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