Tags: Lee | stocks | market | capital expenditures

JPMorgan's Lee: Investors Shouldn't Be 'Worried About Short-Term Noise'

By Dan Weil   |   Friday, 14 Mar 2014 07:51 AM

While stocks tumbled Thursday, Thomas Lee, chief U.S. equity strategist at JPMorgan Chase, expects them to resume their rally soon amid pent-up demand.

Some corporations have been building their cash positions, and as their equipment ages and opportunities arise to snap up market share, these companies will make capital expenditures or go for mergers, he told CNBC. A "construction boom" is looming, Lee said.

In addition, lower oil prices and improving weather should boost stocks, he noted.

Editor's Note:
Secret Wall Street Calendar Uses Strange ‘Crash Alert System,’ Gets 18.79% Annual Returns

"Investors will actually want to buy value stocks," Lee argued. "I think you want to buy things that have smokestacks. You'll want to buy technology. You really want to buy financials here as well, but you still always want to own healthcare."

Stocks that have been heavily shorted might turn into good investments too, he added.

Though stocks dropped earlier this year amid turmoil in emerging markets and doubts about U.S. economic growth, Lee sees no reason why investors "should be worried about the short-term noise."

To be sure, "you don't want to have a market that becomes speculatively frothy," he warned. But, "really we should focus on the fact that we're in a bull market."

For the short term, even bullish investors are feeling caution in the wake of the stock market's recent torrid rally and amid uncertainty about the global economy, The Wall Street Journal reported.

"The market is looking for its next catalyst," Jerry Braakman, chief investment officer at First American Trust, told the paper.

Editor's Note: Secret Wall Street Calendar Uses Strange ‘Crash Alert System,’ Gets 18.79% Annual Returns

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While stocks tumbled Thursday, Thomas Lee, chief U.S. equity strategist at JPMorgan Chase, expects them to resume their rally soon amid pent-up demand.
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