Tom Lee: US Stocks May Hit Bottom This Month, Rising Oil Prices Actually Beneficial for US Equities

Mars Finance News, on March 15th, Ethereum treasury company BitMine Chairman Tom Lee said in an interview with CNBC, “I think overall tech stocks are performing quite well, including software stocks. This is reasonable for us, but I want to say something counterintuitive. Rising oil prices are actually relatively good for the U.S. stock market. One reason is that the U.S. is a net oil producer. When people worry that rising oil prices will slow global economic growth, they tend to prefer holding growth stocks. This encourages investors to buy into the U.S. stock market because the U.S. market itself is a ‘growth index,’ especially the MAG-7 and software sectors. So I believe the current market performance actually makes sense. I also think the stock market may be forming a bottom this month. The issue with private credit has actually existed for some time and is only now gradually surfacing. But I believe the situation is not as systemic as the market fears. Many people think of Lehman Brothers and the global financial crisis when they see problems, but there are many reasons indicating the situation is different this time. First, the market size is not as large as it was back then. Second, the credit stress signals we see now are not as severe as in 2008. So I believe it is indeed dragging down the financial sector now, but it won’t become a systemic problem for the entire market or economy.”