Trump Rally speed bump is your opportunity to buy: Tom Lee

One of Wall Street's biggest bulls is waving the white flag on the rally and delivered an unnerving message for investors: A near-term storm is on the horizon for stocks.

Lee, who serves as head of research for Fundstrat Global Advisors, says that the market watcher expressed concern over value stocks getting off to a weak start this year by lowering about 5-6%.

His analysis echoed that of veteran technician Louise Yamada, who told CNBC last week that the Dow Jones Industrial Average is stuck in a "sideways consolidation" that could signal "a pullback of about 5 or 6 percent."

However, Lee encouraged investors to buy the dips, in anticipation of an upswing in the second half of 2017. He is also adamant that a pullback won't lead to a bear market.

If executed properly, tax reform, lighter regulation and fiscal expansion should trigger faster economic growth, which Lee says favors value in the markets. Additionally, he says that fiscal expansion occurring in multiple developed economies will help bolster growth in the U.S.

Indeed, earnings have been strong thus far. According to Thompson Reuters, if the remaining 76 S&P 500 Index companies that have yet to issue quarterly results report estimates in line with expectations, earnings growth will be up 8 percent from the fourth quarter. Additionally, 67 percent of earnings reports have come in above estimates, while 12 percent of reports have matched estimates.

Ultimately, Lee says investors should look towards energy and materials as sectors with upside potential.

"We're going to see 10 percent plus comps later this year," Lee added.

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