As the stock market continues its impressive 2024 rally, a leading Wall Street forecaster is warning investors to brace for turbulence. Tom Lee of Fundstrat, known for his accurate market predictions this year, told that stocks could experience a pullback of up to 10% over the next eight weeks.

Lee points to two major events on the horizon as potential catalysts for market volatility: the Federal Reserve’s upcoming policy meeting and the U.S. presidential election. “I think investors should be cautious for the next eight weeks,” Lee advised, noting that while the market has shown incredible strength, rising in seven out of eight months this year, these upcoming events “will get people nervous.”

The Federal Reserve’s mid-September meeting looms large, with expectations of at least a 25 basis point interest rate cut. However, Lee suggests that market reactions could be unpredictable, regardless of the outcome. A stronger-than-expected jobs report could lead to a reassessment of rate cut expectations, while a weaker report might stoke recession fears.

Adding to the uncertainty is the approaching U.S. election. Historically, September is a challenging month for stocks, with election years often extending this volatility into mid-October. However, Lee and other experts see a potential silver lining, predicting a relief rally once election results are known.

Despite these short-term concerns, Lee remains optimistic about the market’s long-term prospects. He views the potential pullback as a buying opportunity, advising investors to be “ready to buy that dip.” This aligns with his broader bullish outlook, including a bold prediction that the S&P 500 could triple this decade, reaching 15,000 by 2030.

As investors navigate these potentially choppy waters, Lee’s message is clear: be cautious in the short term, but don’t lose sight of the long-term opportunities in the stock market.