Tom Lee's first overseas trip of the new year: A broad-based market rally at the start of the year is a good sign, but a bear market may emerge by mid...
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TL;DR
Tom Lee predicts a broad-based market rally in early 2026 is positive, but warns of a potential bearish phase mid-year, followed by a strong rebound, ending bullish with S&P 500 possibly hitting 7700. He sees any pullback as a buying opportunity.
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Tom Leemarket rallybear marketS&P 500Federal Reserve
According to Mars Finance, in an interview with CNBC on January 8th, Tom Lee stated that a broad-based rally at the start of 2026 (in stocks, precious metals, cryptocurrencies, etc.) has always been a good sign for investors and institutional investors due to the good market breadth. This year, however, will be a year of "joy, depression, and rally," similar to the pattern of 2025. "There will be a moment this year that feels like entering a bear market," but this will be followed by a strong rebound, ultimately ending the year bullish. He predicts the S&P 500 could reach 7700 points by the end of 2026. He believes there could be a 15% to 20% pullback as the market tests the new Federal Reserve Chairman, especially in the second half of the year, but this is not the end of the cycle, but rather a buying opportunity.