Program and guest
An intraday discussion on CNBC featuring Tom Lee, head of research at Fundstrat. This article covers only Tom Lee’s remarks throughout the full video.
Key points
(The following paraphrases the guest’s original meaning; timestamp links lead to the corresponding parts of the original video.)
- It looks like someone is being forcibly liquidated today: Tom Lee said he did not know whether it was an institution or someone with a large position, but the declines in these individual stocks looked like the result of forced selling. 2:44
- But money has not left the market: At the same time, the equal-weighted market was rising, indicating that substantial funds were still circulating in the market. This was not a selloff in which everyone was heading for the exit at once. 2:54
- Institutions are waiting for the midterm elections: Institutional investors lack confidence ahead of the midterms. Between now and 3 November, it will not take much bad news to send stocks sharply lower because there is little willingness to buy. 3:09
- Retail investors are waiting too: People do intend to buy the dip, but have scheduled their purchases for after 3 November—they are unwilling to catch a falling knife now before the election outcome becomes clear. 4:02
Background and notes
The subtitles cover 0:02–4:57; this article compiles Tom Lee’s remarks throughout the full video. The subtitles end mid-sentence, but all of Tom Lee’s remarks quoted here are complete. The views and timestamps are paraphrased from the original subtitles; timestamps mark the beginning of the corresponding segments of speech.