Tom Lee said investors should brace for bumps as markets digest higher yields and political uncertainty, telling CNBC his view that there is “excessive pessimism” in the market mood and that the backdrop could produce volatility.
Lee, Fundstrat’s head of research, spoke on CNBC’s “Squawk Box” on Oct. 5, 2026, discussing the September jobs report, the Fed’s inflation fight and how those forces are shaping sentiment across equities and crypto.
Tom Lee also flagged technical trading conditions after recent selloffs; market data showed the Cboe Volatility Index rose sharply on the same days analysts were debating whether a pullback was a buying opportunity, a signal traders often read as increased near-term volatility.
Lee argued on CNBC that worries about higher U.S. bond yields and political events have created “excessive pessimism” even as some fundamentals remain intact, and he pointed to areas such as semiconductors and crypto as tactical buy ideas after pullbacks.
What investors should watch next, Lee said, are policy signals from the Federal Reserve and incoming economic releases that could widen moves in risk assets; technical strategists at Fundstrat continue to monitor support zones in beaten-down sectors.
For readers weighing tactical decisions, Fundstrat’s stance is one of cautious optimism: expect higher amplitude moves even if the medium-term bull case remains on their roadmap.
We link related analysis on market positioning and rate-driven moves for context.
Market news: U.S. markets rise as investors weigh Fed rate path, per Reuters
Market correction may be winding down, Morgan Stanley’s Mike Wilson says
Sources
- CNBC — Tom Lee interview on “Squawk Box” describing market sentiment as “excessive pessimism” and highlighting risks from yields and politics.
- Yahoo Finance — Report on Tom Lee saying recent selloffs set up buys and noting the Cboe Volatility Index (VIX) rose sharply on the pullback.
