Core Viewpoint - Fundstrat Global Advisors' Managing Partner and CIO Tom Lee maintains a bullish outlook for the S&P 500, predicting it could reach between 7,200 and 7,300 by year-end despite early December volatility [1][5]. Market Conditions - Lee attributes his positive forecast to favorable Federal Reserve policies and historical seasonal trends, marking the end of quantitative tightening (QT) as a pivotal moment for market liquidity [2][3]. - The conclusion of QT, which has been a headwind since April 2022, is expected to shift the monetary backdrop from tightening to easing, with potential interest rate cuts anticipated [3]. Economic Outlook - Lee suggests that the weakening inflation narrative allows the Fed to cut rates to support a resilient labor market, despite recent data challenges [4]. - The November market reset, which saw a reduction in leverage from high-risk trades, is viewed as a healthy foundation for a year-end market surge [4]. Investor Behavior - Lee predicts that investors who were overly cautious will engage in "performance chasing" as seasonal tailwinds emerge, potentially driving the S&P 500 up by an additional 5% to 10% [5]. Cryptocurrency Market - While optimistic about equities, Lee has adjusted his timeline for cryptocurrency, expecting Bitcoin to reach new all-time highs by the end of January rather than December, following a broader recovery in risk assets [6]. Recent Market Performance - The S&P 500 and Nasdaq 100 indices experienced declines at the start of December, with the SPDR S&P 500 ETF Trust down 0.46% and the Invesco QQQ Trust ETF down 0.34% [7].