Tom Lee stated in an interview with CNBC that a broad market rally (stocks, precious metals, cryptocurrencies, etc.) at the beginning of 2026 has always been a good sign for investors and institutional investors. This year will be one of "joy, depression, and rally," similar to the pattern in 2025. There will be a moment this year that feels like entering a bear market, but it will be followed by a strong rebound, and the stock market will ultimately 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, there may be a 15% to 20% pullback, especially in the second half of the year, but this is not the end of the cycle, rather a buying opportunity.