Tom Lee's First Trip Abroad in the New Year: Broad Rally at Year Start is a Good Sign, Bear Market May Appear Mid-Year

Tom Lee told CNBC that the broad rally (stocks, precious metals, cryptocurrencies, etc.) at the start of 2026 is a good sign for individual investors and institutional investors, as good market breadth has always been a positive indicator. 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 that makes people feel like they've entered a bear market, but it will subsequently rally strongly, and ultimately the stock market will end on a bullish note. He predicts the S&P 500 Index could reach 7700 points by the end of 2026. He believes that when the market tests the new Federal Reserve chair, a 15% to 20% correction could occur. Particularly in the second half of the year, but this is not the end of a cycle, but rather a buying opportunity.