Tom Lee's first overseas trip of the new year: a broad rally at the start of the year is a good omen, bear market possible mid-year

Tom Lee said in an interview with CNBC that a broad rally at the start of 2026 (stock market, precious metals, cryptocurrency, etc.) is a good omen for retail and institutional investors, as good market breadth has always been a positive sign. This year will be a year of "joy, depression, and rally," similar to the pattern seen in 2025.

There will be a moment this year when people feel they've entered a bear market, but it will be followed by a strong rebound, and ultimately the stock market will end on a bullish note. He predicts the S&P 500 index could reach 7700 by the end of 2026. He believes that when the market tests the new Federal Reserve chairman, there could be a 15% to 20% pullback, particularly in the second half of the year, but this is not the end of the cycle, but rather a buying opportunity.