US STOCKS WILL EXTEND RECORDS AS COVID-19 CASES DECLINE AND AMERICA BECOMES 'ONE OF THE SAFEST PLACES IN THE WORLD,' FUNDSTRAT'S TOM LEE SAYS
US STOCKS WILL EXTEND RECORDS AS COVID-19 CASES DECLINE AND AMERICA BECOMES 'ONE OF THE SAFEST PLACES IN THE WORLD,' FUNDSTRAT'S TOM LEE SAYS
"This "capital "falling "it "might "one "rapid "safe "was 'ONE (on 10,000 3 30 36,050, 5,000 AMERICA AND AS Additionally, America At BECOMES Business CASES COVID-19 Cindy DECLINE EXTEND Europe Europe, FUNDSTRAT'S Finally, Fundstrat Fundstrat's IN If Images Images© In Insider's LEE Lee Lee. Monday, Monday. Morgan OF Ord/Getty PLACES RECORDS Read Research Research© SAFEST SAYS STOCKS September September" Stanley Stocks Sunday's THE TOM That The Tom US US, US," US. USA Visit WILL WORLD,' With a according also and around as at available, based basis)," be becomes becoming begin believes below big breach breaks breakthrough but by capital case cases cases, cases. clients close combined comes considered continue continues, continuing correction could countries crash current daily data decline decline. detailed disease down dragged early elsewhere. entirely explained. extend fall few five for four from further gains gets have haven he headed herd higher highs hit homepage if immunity in increasing infection into is it leading less level lower making man map: market million, more more: nations new note note. observed. of on one oneUS options other pace pace," per places positive," possible potential prior put quickly rapidly" reached, reasons record relative remains reporting rise run safe safest said said. second-wave see seek short-term six so soon spike spread," spreading, steadily stocks stocks, stories. sub sub-10,000 sub-30 suit supportive territory. than that the their three tie: to told track treatment trends two ultimately up vaccine, vastly verge want wearing week weekly were when will winners with world" world, world," would
US STOCKS WILL EXTEND RECORDS AS COVID-19 CASES DECLINE AND AMERICA BECOMES 'ONE OF THE SAFEST PLACES IN THE WORLD,' FUNDSTRAT'S TOM LEE SAYS
a man wearing a suit and tie: Cindy Ord/Getty Images© Cindy Ord/Getty Images Cindy Ord/Getty Images
With daily COVID-19 cases continuing to decline at a "rapid pace," America is on the verge of becoming "one of the safest places in the world," according to Fundstrat's Tom Lee.
In a note to clients on Monday, Lee detailed the daily decline of COVID-19 cases in the US with the steadily increasing cases in Europe and elsewhere.
Lee said he believes the US could soon fall below Europe in reporting new daily COVID-19 infection cases, according to the note.
If the US becomes a safe haven from COVID-19 relative to Europe, stocks will extend their record gains and continue to rise as capital will seek the US.
Visit Business Insider's homepage for more stories.
Stocks will continue their run and hit record new highs if the US becomes "one of the safest places in the world" when it comes to daily COVID-19 cases, Fundstrat's Tom Lee told clients on Monday.
With COVID-19 cases "falling so rapidly" in the US, daily cases could breach sub 10,000 by early September if the current pace continues, Lee said.
That decline would put the US on track to have daily COVID-19 cases fall below Europe, making it one of the safest countries in the world, the note said.
Sunday's COVID-19 case data "was positive," as cases were down around 5,000 from the prior week to 36,050, Lee observed. Lee said he believes "it is entirely possible that USA COVID-19 cases crash to sub 10,000 in September" based on the current trends in the weekly decline.
Read more: Morgan Stanley breaks down 3 reasons stocks could be headed for a short-term correction as the market gets dragged higher by a few big winners
At a sub-10,000 level of daily cases, the US would be at less than 30 daily cases per million, considered to be a "safe level of spread," according to the note. "This remains a disease spreading, but at a vastly lower pace," Lee explained.
At sub-30 daily cases per million, the US "might be considered one of the safest nations (on a COVID-19 basis)," said Lee. The decline comes as other countries begin to see a second-wave spike in COVID-19 cases.
a close up of a map: Fundstrat Research© Fundstrat Research Fundstrat Research
Additionally, if herd immunity is ultimately reached, daily cases could crash quickly in the US, Lee said.
If US COVID-19 cases continue their pace of decline and fall below Europe, "capital will also want to seek the US," leading stocks to rise further into record territory.
Finally, more treatment options becoming available, combined with a potential breakthrough in a COVID-19 vaccine, would be supportive for stocks, Lee said.