Tom Lee Predicts ‘Joy, Depression and Rally’ for Stock Market in 2026 – Here’s His Outlook
Tom Lee says that there are extra causes to be optimistic about monetary markets in 2026 than not.
In a brand new interview on CNBC, the pinnacle of analysis at Fundstrat predicts a possible uneven section within the early a part of the yr, earlier than a powerful end with markets within the inexperienced.
“Compressed into one yr, it is going to be pleasure, despair and a rally. I feel identical to final yr, 2025 we had a horrible begin, folks bought very gloomy, then we had a pleasant rally to complete the yr. April was the low… So I feel the market will take a look at the brand new Fed. That most likely is the rationale we now have some concern this yr.
However there’s quite a lot of issues to be optimistic about. The tariffs are ‘anniversarying,’ the Fed is chopping and the ISM (Institute of Provide Administration may lastly flip again above 50 and that’s excellent news. We’re fairly optimistic about some teams which have lagged like vitality is considered one of our prime sector picks this yr.
Moreover the Magnificent 7, Lee additionally names different sectors that would doubtlessly catch an outsized bid this yr.
The Magazine 7 ought to nonetheless maintain producing good earnings development, after which the financials and small caps. So it’s like quite a lot of issues that would go proper available in the market.
I feel earnings will do even higher… Different sectors are re-rating, however the Magazine 7 would possibly simply observe the earnings development. In order that’ll pull the general [price to earnings] down.”
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