BlockBeats News, March 16th, in a recent interview with CNBC, Tom Lee said he believes that after experiencing narrow fluctuations for most of this year, the S&P 500 Index will continue to rise in the coming weeks. However, the U.S. stock market will enter a bear market this year, although it will first rise to a new record high.
Lee warned that the stock market bears may fully exert their strength as the year-end approaches.
“Our view is that we do expect the drop to happen when the market no longer reacts to good news. So I think we are in a period where software stocks, the ‘Big Seven of the U.S. stock market,’ and cryptocurrency have already experienced a bear market. I think a lot of speculation has been squeezed out. So for me, our judgment is that the market will actually rise before the end of the month, close up in March, maybe reaching 7300 points. Later this year, we think a bear market may emerge.”
Referring to oil, Lee explained why a surge in oil prices is bullish for the stock market.
“First, the U.S. is an oil exporter, so our economy will benefit from the rise in oil prices. Second, other countries are importers. So not only is the U.S. performing better on its own, but it should also perform well on a relative growth basis, which means that funds will flow back to the U.S. Third, as you mentioned, for all these reasons, when we are worried about global growth, when growth becomes scarce, people will buy growth stocks. The U.S. stock market is the growth stock index, so funds will flow back to the U.S. from other parts of the world. So I think this is a rotation story.”
