Wall Street analysts don't always make accurate predictions, but Tom Lee from Fundstrat Global Advisors has put together a string of impressive calls over the last couple of years. He said the S&P 500 index would hit 4,750 in 2023, and it closed the year at 4,769. He then predicted the S&P would hit 5,200 in 2024, which was the most bullish target on Wall Street at the time, and it surpassed that level within the first three months.

Lee also forecast a 50% gain this year for the Russell 2000, an index featuring approximately 2,000 of the smallest companies listed on U.S. stock exchanges. The potential for falling interest rates combined with cheap valuations are two key reasons for his prediction.

The Russell 2000 hit its high point for 2024 (so far) on July 16, and Lee came out on that very day and reiterated his bullish stance in an interview on CNBC. But the index has been trading down since then, and it's sitting on a gain of just 10% for the year. That means it will have to climb by another 37.1% within the next four months to hit Lee's target.

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Source Fool.com