Tom Lee, who heads up a research team at a well known firm, recently made some surprising predictions. He reckons the profit taking that was seen last weekend is a smart time to  invest more money in the world markets. He gave his thoughts on the recent sell-off in stocks due to the news of new tariffs in a TV interview at the start of the week.

        The strategist said that, although there is a 1. 5% fall in equity futures markets as a reaction to tariffs on imports, he believes the stock markets should be viewing these policy changes as more of a negotiating tool to strengthen America's position in the market.

        Lee mentioned the US had serious trade talks on the side. This strategy of tariffs was meant to put pressure on exporting nations. If they give way to any concessions, the tariffs could end sooner than expected. There is a chance the current sell off is a result of collateral damage on blase investors.

        The strategist also predicted that the markets will increase and overall, the S&P 500 Index is going to gain more ground.

        Cryptocurrencies were another subject Lee discussed. He stated that bitcoin also had a steep fall in the last while. Investors sold their cryptocurrencies to cover losses on traditional assets.

        Despite its recent price fluctuations, investors shouldn't dismiss Bitcoin. He believes it will still be one of the top performing assets, but will go through some short term pain

        He also said that Bitcoin can continue to fall further, dropping as low as $70, 000 before rebounding. You should be ready to buy more if it get that low. In Lee's opinion, the recent price is not the lowest it will go before the end of the month and investors should think hard before adding it to their portfolio. The only respite it might have is to buy more.

Why Falling prices could be good for stocks -and watch out for Bitcoin

Actions