Fundstrat's Tom Lee predicts the S&P 500 will surge to 5,200 by the end of 2024, implying a 9% increase from current levels. Lee's predictions are based on expectations that inflation will continue to drop and the Fed will cut interest rates. He believes inflation falling to 2% would be a "very visible" possibility in 2024. Lee notes that double-digit S&P 500 gains have over a 50% chance of occurring in 2024. He points to a century-long trend showing stocks tend to deliver double-digit returns when 10-year Treasury yields are between 3-4%, as they are currently.
