Fundstrat’s Lee Sees Painful Market Decline to Start 2026

Fundstrat head of research Tom Lee anticipates a difficult start to 2026 for both stock and crypto markets, citing geopolitical tensions and potential tariffs, which could cause a market decline before a recovery later in the year. Lee expects a 15% to 20% stock market correction in the current year, but believes the year will finish strong due to a more dovish Federal Reserve. Regarding Bitcoin, Lee still expects a new all-time high this year, viewing it as confirmation that the market has overcome the deleveraging event from the October 10 crash. He noted that crypto's instability is partly due to these deleveraging cycles impacting market makers. For 2026, Lee favors energy and basic materials sectors, while analyst Benjamin Cowen suggests metals might outperform crypto again, though Cowen foresees a significant correction for metals later this year.

(Source：Cointelegraph)