Next six months will be most important for inflation, says Fundstrat's Tom Lee

• Rising yields are currently competing with stocks but also benefit stronger companies like the 'Mag 7' by making competition tougher for others.
• Inflation is expected to decline in the next six months due to changes in PCE methodology (potentially lowering year-over-year by 20-40 basis points), fading tariff effects, and stable oil prices around $100.
• If inflation declines as predicted, the Fed could become less hawkish, providing a positive catalyst for the market.

Fundstrat's Tom Lee believes that despite current rising yields, inflation is highly likely to decline in the next six months due to methodology changes and fading effects from tariffs and flash memory. He suggests that this could lead the Fed to walk back its hawkish stance, benefiting stronger companies and allowing the market to breathe a sigh of relief.