Artificial intelligence, great wealth transfer: Why this financial analyst sees a rosy time ahead for stocks

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Some investors may worry about market volatility ahead, given a contentious presidential race, lingering inflation, sinking consumer sentiment and uncertainty over Federal Reserve interest rate cuts. Financial analyst Tom Lee has a more optimistic outlook. "Since Covid, companies went through a huge stress test, and they showed that they are really good at adjusting to inflation shocks, supply shocks, economy shutdown," said Lee, managing partner and head of research at Fundstrat Global Advisors. He spoke on Wednesday at the CNBC Financial Advisors Summit. As a result, he said, "we think the earnings power is much better than people realized." Even as inflation cools, many companies will benefit, Lee said. (Higher prices are usually considered a good thing for businesses.) "A lot of companies have an inverse correlation to inflation," he said. "A great example is technology is inversely correlated to inflation, so their margins actually go up if inflation is falling."