Macro Correction and Recovery Forecast for 2026

2 days ago

Tom Lee

"He's expecting a 20% plus correction in the first half, followed by a magnificent recovery up to new all-time high of about 7700 in 2026. This is a pretty amazing call and it's very similar to what I talked about in my latest market update video and I recommend you to watch it if you're interested. But he did mention that this is normal after multiple years of 20% plus gains. And if you look at the history over the last 20 years in terms of the S&P 500, anytime we have two or I should say three positive years, the fourth year tends to be a really negative year."

The insight highlights Tom Lee's forecast of a significant 20% correction in the first half of 2026 followed by a robust recovery to record highs. It underscores historical market patterns where strong consecutive years often lead to a subsequent downturn, raising concerns about market cyclicality. This macro commentary cautions investors to be aware of structural risks and cyclical downturns tied to economic and electoral uncertainties.

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