Leaders at the Bell with Michael Lee, Michael Lee Strategy, March 24, 2026

Michael Lee, founder of Michael Lee Strategy, discusses the complex market environment shaped by escalating tensions between the United States, Israel, and Iran. He identifies the Strait of Hormuz as the critical focal point for investors, noting that until shipping traffic normalizes, market volatility will likely persist. The conflict has already driven energy costs sharply higher, with diesel prices exceeding seven dollars per gallon in California, pushing inflation back toward two percent after previously dipping below one percent. This inflationary pressure complicates the Federal Reserve's rate policy amid tensions between Chair Jerome Powell and the Trump administration, making rate cuts unlikely for the remainder of the year.

Despite near-term headwinds, Lee remains constructive on artificial intelligence and defense technology stocks, particularly highlighting Palantir and Nvidia. He notes that Palantir's Maven system is becoming the operating system for the entire Department of Defense, creating a centralized platform comparable to Apple's iOS for military capabilities. Lee views current market weakness as a buying opportunity for quality technology names trading at compressed valuations. He addresses concerns about private credit dislocations at firms like Apollo, Ares, and Blue Owl, acknowledging risks but expressing confidence in their underwriting standards, contrasting them favorably with the subprime mortgage crisis. Lee ultimately anticipates substantially higher markets twelve to twenty-four months forward once geopolitical tensions resolve.