Thoughts about the stock market for the coming year.

Closed Captions Highlights from Tom Lee's interview on 12/7/23 with CNBC

1. Fed was fighting an inflation War not a business cycle so our bet was inflation would be softer. You'd avoid a hard landing and then we've seen the FED kind of take its foot off the neck of monetary policy.
2. Economists were too bearish and the technical picture turned positive very
   quickly.
3. People should study the Market's internal structure we've seen a huge turnaround in cyclical stocks, the banks are turning the regional banks are turning up small caps are leading this is not the end of cycle Market Behavior. This is early cycle expansion reaccelerating.
4. If it was a head fake we'd see credit calling baloney and we'd see spreads riding or high-yield falling but what's happened is spreads have rallied high -yields rallied. It's actually an improving liquidity rally while investors took $240 billion out of stock this year.
5. I think it's going to show the FED is no longer fighting an inflation War but really shifting towards managing the business cycle huge change. I think interest rates could make a huge move lower. It could be 3 to 3.5% and that would take mortgage rates down to 5 or under.
6. I do think that the $240 billion that left is coming back.
7. Stocks could do very well next year. Tom Lee's target for 2024 S&P is 5200
8. Tom's been incredibly accurate so far in 2023