Investors can be forgiven for feeling nervous after navigating what Fundstrat Global Advisors’ head of research Tom Lee calls a series of “extinction events” over the last four years. However, according to the top analyst, the very trauma of these recent crises has suppressed the economy and investor sentiment, creating a coiled spring for a bullish 2026.
Speaking on The Prof G Markets Pod, Lee argued that the market’s resilience in the face of relentless shocks is a signal of underlying strength. He identified six “extinction events” rattling the market, including the COVID-19 pandemic, the supply-chain crisis, the fastest inflation cycle in history, and then the fastest series of Federal Reserve rate hikes in history. Additionally, Lee pointed to instability involving tariffs and geopolitical tensions, such as the U.S. strikes involving Iran, as events that have collectively “made investors very nervous about… investing in full risk, because these are, what, six black swans that happened in four years,” he said, referring to the famous markets theory by Nassim Nicholas Taleb.
Lee made his remarks before the U.S. strike on Venezuela, yet another example of geopolitical tensions scrambling markets. He doubled down in a Jan. 5 appearance on CNBC’s Squawk Box, saying that 2026 is shaping up to be a year with strong fundamentals in markets, while emphasizing that the market needs to digest three years of annual gains over 15%.
