Yahoo Finance·2025-12-28 13:15Core Thesis - Tom Lee believes that if big technology stocks continue to support risk markets and the Federal Reserve becomes more accommodating, both equities and cryptocurrencies could experience significant growth by 2026 [1]. Digital Assets and Blockchain - Lee views the recent decline in digital assets as a temporary liquidity shock rather than a sign of a broken market, linking his optimism to Wall Street's increasing adoption of blockchain for payments, assets, and settlements, which he believes is particularly favorable for Ethereum [1][2]. - He argues that tokenization and on-chain settlement will give Ethereum a structural role in the future of finance, reinforcing his bullish stance on the cryptocurrency [3]. Investment Recommendations - For 2026, Lee's top stock picks include Nvidia, AMD, Meta, Goldman Sachs, and Arista Networks, while he identifies CrowdStrike, Costco, Palo Alto Networks, Tesla, and Willis Towers Watson as less timely investments, though not outright sells [5]. - He anticipates that a broader mix of sectors, including financials, industrials, energy, and basic materials, could also perform well [6]. Market Dynamics - Lee emphasizes that digital assets should be viewed as part of the same liquidity cycle that influences equities, suggesting a close relationship between the two markets [7].