Tom Lee Predicts Stock Rebound

FINANCE
Tom Lee Predicts Stock Rebound

Wall Street strategist Tom Lee remains optimistic about the stock market despite recent declines driven by economic concerns. He predicts a strong rebound in the coming months, potentially rising 10-15% between March and May. Lee’s track record adds credibility, as he accurately forecasted the S&P 500’s 20%+ gains in 2023 and 2024.

Market fears have surged due to President Trump’s aggressive tariff policies, which have unsettled businesses and consumers. However, Lee argues that markets often bottom out before economic data worsens, making now a potential buying opportunity. He also highlighted that missing the market’s top 10 trading days drastically reduces returns, reinforcing the importance of staying invested.

Lee believes economic slowdowns or job market weakness could trigger policy support from Trump or the Federal Reserve, boosting stocks. With extreme fear dominating sentiment, he echoes Warren Buffett’s advice: “Be greedy when others are fearful,” suggesting that investors should position for a potential market turnaround.

TECH
Trump Pushes for TikTok Sale

President Donald Trump said Sunday that he is negotiating with four potential buyers for TikTok’s U.S. business and expects a deal to happen soon. While he didn’t name the bidders, he stated that all four were strong contenders.

TikTok’s parent company, ByteDance, faces an April 5 deadline to sell its U.S. operations or risk a nationwide ban under a bipartisan law passed during the Biden administration. The U.S. is TikTok’s most valuable market, with its American division estimated to be worth up to $50 billion last year.

Trump has previously extended the sale deadline and signaled openness to further extensions. He has also suggested that the U.S. government should receive a 50% stake in TikTok as part of any deal.

While Beijing-based ByteDance has shown no interest in selling, CEO Shou Chew met with Trump at Mar-a-Lago in December. Meanwhile, China’s government remains opposed to any sale, making the situation more uncertain.

CRYPTO
Strategic Bitcoin Reserve Sparks Volatility

Bitcoin dropped on Monday as volatility continued following President Donald Trump’s executive order to establish a strategic Bitcoin reserve for the U.S. The cryptocurrency fell as much as 6.5% to around $80,650 before recovering some losses, settling at $82,050 by early morning, according to Coin Metrics.

The reserve will be funded by Bitcoin seized in criminal and civil forfeiture cases, with no plans for government purchases. Investors had initially hoped for a more aggressive accumulation strategy, leading to disappointment and a market pullback after the announcement last Thursday.

Other cryptocurrencies also saw sharp price swings. Ether and XRP initially dropped around 7.5% before rebounding.

Despite the short-term decline, some investors remain bullish. Bitwise CIO Matt Hougan told CNBC’s Squawk Box Asia that markets are misreading the move. He emphasized that the executive order could elevate Bitcoin’s status as a geopolitical asset, potentially prompting other nations to follow suit, which he believes is ultimately bullish for long-term adoption.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.