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 top 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 believe identical to final yr, 2025 we had a horrible begin, individuals obtained very gloomy, then we had a pleasant rally to complete the yr. April was the low… So I believe the market will take a look at the brand new Fed. That most likely is the rationale we’ve got some worry this yr.
However there’s lots of issues to be optimistic about. The tariffs are ‘anniversarying,’ the Fed is slicing and the ISM (Institute of Provide Administration might lastly flip again above 50 and that’s excellent news. We’re fairly optimistic about some teams which have lagged like power is one in every of our prime sector picks this yr.
In addition to 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 progress, after which the financials and small caps. So it’s like lots of issues that would go proper out there.
I believe earnings will do even higher… Different sectors are re-rating, however the Magazine 7 may simply monitor the earnings progress. In order that’ll pull the general [price to earnings] down.”
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