The S&P 500 stands a possibility of hovering up to 30% subsequent yr, in keeping with Fundstrat’s Tom Lee.Picture by means of Spencer Platt/Getty ImagesStocks may jump up to 30% this yr, Fundstrat’s Tom Lee mentioned.Lee predicted the S&P 500 would notch 5,200, implying a 9% building up from the index’s present ranges.However there may be in truth a 50% likelihood of the index hovering previous that, because of this century-long pattern.Consistent with Fundstrat’s Tom Lee, the S&P 500 stands a possibility of hovering up to 30% subsequent yr, with the expectancy that inflation will proceed to drop and the Fed will in spite of everything slash rates of interest.Lee, who has made a reputation as probably the most constantly bullish strategists on Wall Side road, predicted the S&P 500 would surge to five,200 by means of the tip of 2024, implying a 9% building up from the benchmark index’s present ranges.Lee’s predictions are basically in keeping with the Fed’s anticipated charge cuts and inflation shedding “like a rock”, as he has in the past predicted. Those elements must give shares the runway to jump in 2024.”Shoppers will notice that the speed of charge will increase is slowing,” Lee mentioned in an interview with CNBC final week, including that inflation falling to two% can be a “very visual” chance subsequent yr.”Double-digits is greater than 50% likelihood,” Lee mentioned of S&P 500 features in 2024, even bearing in mind that shares already notched double-digit features final yr.The index in truth has greater than a 50-50 likelihood of notching the ones double-digit features, he mentioned, pointing to a century-long pattern between shares and Treasury yields.Since 1900, shares had been more likely to notch double-digit returns when the 10-year Treasury yield hovers between 3%-4%, Lee mentioned.65% of the time Treasury yields have traded inside this vary, the S&P 500 notched a price-to-earnings more than one of greater than 18. And 50% of the time, the price-to-earnings ratio was once greater than 20, Lee mentioned.Treasury yields have fallen inside this golden vary over the last few weeks, because of traders ramping up their expectancies for Fed charge cuts. And regardless that Lee’s 5,200 charge goal assumes inventory multiples staying the similar, an S&P 500 more than one of 20 would suggest a 30% surge in shares this yr, he mentioned, assuming company income are set to develop round 10%.Lee was once spot-on in his inventory marketplace forecast in 2023, having predicted the S&P 500 would jump over 20% to finish the yr round 4,750. The benchmark inventory index ended the yr round 4,769, not up to 1% clear of Lee’s goal.Learn the unique article on Trade Insider