Tom Lee says Wall Street is waiting until November 3 to buy the dip

Wall Street may be sitting on plenty of cash, but investors aren't rushing to buy the latest market selloff.
Fundstrat's Tom Lee says institutional investors are holding back ahead of the November 3 US midterm elections, waiting for greater political clarity before committing more capital.
Speaking on CNBC, Lee argued that the recent market decline may reflect forced selling rather than a complete disappearance of investor demand.
He pointed to an interesting divergence: while major technology stocks were falling sharply, the equal-weighted market was showing greater resilience.
That suggests money hasn't necessarily left the market. Some of it may simply be moving elsewhere.
But here's the problem.
When institutional investors lack conviction, even relatively modest selling pressure can trigger outsized declines because fewer buyers are willing to step in.
Lee believes the midterm elections could become an important turning point for investor sentiment, with some market participants waiting until after November 3 to reconsider buying the dip.
However, a post-election rebound isn't guaranteed. AI valuations, inflation, interest rates, and corporate earnings remain major risks.
The bigger question is whether the market is experiencing a genuine liquidity shortage or simply a temporary lack of confidence.
There may still be plenty of money on the sidelines. The uncertainty is when investors will feel comfortable putting it back to work.
Source: Tom Lee, CNBC Power Lunch (October 30, 2026), Stocktwits