BitMine’s chairman, Tom Lee, declared the stock market has bottomed and expects a rally back to all-time highs.
Lee shared his outlook during a CNBC interview, arguing that recent price action and the de-escalation of the war signal support for a recovery.
War Resilience Signals the Stock Market Bottom
Lee pointed to last week’s trading as a key turning point. Stocks held steady even as the war intensified and oil prices climbed, which he described as a good precondition.
“I think the bottom is in…because last week was a period where the war was getting worse and oil was going up, but stocks weren’t going down,” Lee said.
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With de-escalation signs, Lee suggested that “stocks are now in the process of going back to their all-time highs.”
“I think maybe get to that 7300 that we were expecting this year,” he forecasted.
Lee added that the market has already endured a rolling bear market, first in energy and financials last year, and then in the Mag-7 and software sectors this year. As a result, roughly 70% of the S&P 500 has already weathered a bear market cycle.
That backdrop, he argued, suggests that any summer lull may be shallower than feared, particularly given that the index has already pulled back by 8%.
“I think there’s an inflation shock still coming. I think that the broadening is taking place. The narrowing is I think more investors are going to buy US because the US has proven its resilience in this wartime period. Plus, the US makes more money in a war. But the broadening is that more US stocks rise,” he added.
BeInCrypto also reported that seasonality points to a favorable outlook for stocks. Over the past 25 years, the MSCI World Index has delivered positive returns in April 75% of the time, with an average monthly gain of 2.0%, the strongest of any month in the calendar.
That performance has been largely driven by US stocks, which account for roughly 70% of the index. The S&P 500 tells a similar story, averaging a 1.3% gain in April since 1928, making it the second-best month of the year, trailing only July.
The post ‘The Bottom Is In’: Tom Lee Gives Bold New Prediction For US Stocks appeared first on BeInCrypto.
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Author: Kamina Bashir
