Fundstrat research chief Tom Lee responds to the Federal Reserve’s latest rate hike. The Fed’s meeting this week marks its first increase in more than three years. Lee says the Fed has chosen a violent path, but he views this most hawkish move as laying the groundwork for a stock market rebound. If incremental data turns dovish, the Fed’s extremely hawkish stance instead leaves room for a pullback in the future.

Lee continues his longstanding contrarian position. While the market generally expects September to be bearish, he argues that overly pessimistic sentiment will give rise to upside surprises. He also lists crypto assets as a downstream beneficiary of this round of macro liquidity.