ChainThink reports that, in a recent interview with CNBC on March 16, Tom Lee stated that he believes the S&P 500 will continue to rise in the coming weeks after experiencing a narrow range-bound movement for most of this year so far. However, he expects U.S. equities to enter a bear market this year, albeit after first climbing to new all-time highs.
Lee warned that stock market short sellers may launch a full-scale attack near the end of the year.
Our view is that we do expect a decline to occur once the market stops reacting to good news. So I believe we are currently in a period where software stocks, the 'Magnificent Seven' U.S. tech giants, and cryptocurrencies have already gone through bear markets. This has likely squeezed out a significant amount of speculation. Therefore, our assessment is that the market will actually rise before the end of the month, closing March higher, possibly reaching 7,300 points. Later this year, we believe a bear market may emerge.
Regarding oil, Lee explained why rising oil prices are beneficial for the stock market.
First, the United States is an oil exporter, so our economy will net benefit from rising oil prices. Second, other countries are importers; therefore, not only will the U.S. perform better on its own, but it should also outperform relative to global growth—meaning capital will flow back to the U.S. Third, as you mentioned, when we worry about global growth and growth becomes scarce, investors buy growth stocks. The U.S. stock market is the global growth index, so capital will rotate back to the U.S. from the rest of the world. So I believe this is a rotation story.