Performance Chasing in July Could Drive Markets Regardless of Earnings

Tom Lee predicts fund managers will buy aggressively in July to recover from June underperformance, creating momentum driven by benchmark anxiety rather than economic fundamentals. This positioning dynamic—distinct from valuation or earnings-based moves—matters because flow-driven rallies carry different tail risks than those anchored to corporate earnings revisions. Career risk and relative mandates can produce identical price charts with very different underlying fragility.