On July 6, Tom Lee, chairman of BitMine, the largest treasury of Ethereum, stated in an interview with CNBC that he expects the US stock market to perform stronger in July. The reasons are that market valuations are more reasonable than before and investor sentiment has not reached an overly bullish state. July will enter the second quarter earnings season, and corporate earnings in the first quarter were significantly better than expected. Currently, the market's price-to-earnings ratio is about 1.1 percentage points lower than in January. He anticipates that second-quarter earnings will again exceed expectations, further lowering market valuations and leaving room for P/E expansion. Therefore, he believes July will be a month of stronger stock performance. Regarding whether the S&P 500 index can reach 8000 points this year, Tom Lee stated that this target is achievable. He noted that 8000 points roughly corresponds to a projected earnings per share of $400 in 2026, with a P/E ratio of about 20 times. He believes this earnings expectation is conservative, and the P/E multiple could reach 22 times or higher, suggesting that the upside potential could even reach 8400 to 8800 points by the end of the year. However, Tom Lee also mentioned that there might be an adjustment that feels like a bear market from now until the end of the year, likely occurring between August and October, rather than in July. Many fund managers have underperformed this year, with only 23% of fund managers beating the benchmark growth stock index, the lowest level in nearly five years, indicating that there may be significant buying demand on dips in July. Tom Lee added that the decline from February to April was only about 7%, but it already felt similar to a bear market; later this year, factors such as the Federal Reserve's new framework and the gradual unlocking of SpaceX stock may test the market.

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Tom Lee: US Stocks Expected to Strengthen in July, S&P 500 May Reach 8000 This Year

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