Tom Lee: Maintains S&P 500 year-end target of 7700 points; historically, wars are often buying opportunities

BlockBeats news, on March 22, Tom Lee, Chairman of BitMine, an Ethereum treasury company, said in an interview with CNBC, "We are maintaining the year-end target for the S&P 500 index at 7700 points. 7700 points is actually a conservative estimate, because we only assumed a moderate expansion of the P/E ratio this year. Although war has caused a huge shock and many uncertainties in the short term, including its impact on monetary policy, in the long run, war may actually be beneficial for the US economy and US stock market. By the end of the year, the market will gradually shift its focus from the crisis itself to the opportunities within it. Looking back at the past eight major war events, the market usually starts to bottom out at the early stage of the conflict."

Regarding whether the current market is overly optimistic, Tom Lee said, "We have actually already experienced a bear market. Last year, energy stocks were already in a three-year bear market, financial stocks were also declining, and MAG-7 was likewise in a downward cycle. These sectors together account for about 70% of the S&P 500. Even before the war began, gold had already shown a parabolic rise. In a sense, the market has long started pricing in geopolitical uncertainties, and investors have already completed de-risking."