Retail investors are here to stay as a force in the stock market, says Tom Lee

Retail investors are here to stay as a force in the stock market, says Tom Lee

Tom Lee, Co-founder and Fundstat strategist.Adam Jeffery | CNBC (This story is for CNBC Pro subscribers only.)Fundstrat Global Advisors co-founder Tom Lee told CNBC on Tuesday he believes retail investors will be a force in the stock market for years to come."I think GameStop is telling markets there's a really bitter pill to swallow right now," Lee said on "Fast Money," referring to the trading frenzy involving the video-game retailer that has pitted hedge funds who had shorted the stock against small investors who hyped up the name in online chat rooms.Lee, who also serves as Fundstrat's head of research, said retail investors have ample cash that could be deployed into stocks and change in market dynamics, such as supporting higher price-to-earnings ratios."For the last 10 years, out of the $3 trillion that people saved, 94% of it went into the bond market, which means today, households are synthetically short stocks," Lee said. "I think now some of that money is flowing into equities, and when money comes into equities, it really lifts all boats."The current moment is a reminder that not every investor is choosing their trades based on company fundamentals, Lee said, calling it a "mistake" to think otherwise. "The wisdom