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It sounds counterintuitive, but according to Tom Lee, head of research at Fundstrat, the ongoing trade tensions between the U.S. and China might actually set the stage for a surprise rally in financial markets. In a recent interview with CNBC, Lee claimed that the market has already priced in most of the damage from President Trump’s tariff policies. So… could chaos be bullish? Maybe.

Panic Often Precedes a Turning Point

Lee notes that investors are currently spooked by high volatility, but ironically, that’s when opportunity knocks. Instead of fixating on the chaos, Lee draws an insightful historical parallel: the stock market correction during the Cuban Missile Crisis in 1962.

Back then, it took twelve days to reach a diplomatic breakthrough, but the market bottomed out after just seven. By the time news broke that tensions were easing, two-thirds of the losses had already been recovered.

In short: markets tend to move before headlines catch up.

US-China Drama Might Have a Silver Lining

Lee believes today’s market could play out similarly. Although tariffs seem protectionist on the surface, he argues that a bilateral agreement between the U.S. and China could deliver far more upside than expected—especially if it allows companies to operate profitably in both regions.

With April 2nd approaching fast, Lee sees the current conditions as the perfect setup for a potential market reversal. Many investors are scrambling to exit the market due to the uncertainty, but historically, this kind of collective panic is often a sign that the bottom is near.

“When investors rush for the exits en masse, that’s usually a strong sign we’re close to a market low,” Lee said. “At that point, the worst news has often already been digested.”

When Everyone Freaks Out, It Might Be Time to Buy

What makes this situation even more interesting is the wider backdrop of global tension, inflation anxiety, and recession fears. These factors often cause investors to react emotionally, creating prime conditions for contrarians with cool heads to strike.

Lee also notes that tech stocks and cryptocurrencies could benefit from a market rebound once the dust settles on trade policy. As risk appetite returns, risk-on assets may shine again—and that could mean a nice boost for both traditional markets and the crypto space.

Will It Really Happen? TBD… But It’s a Fun Thought

Whether or not the market rebound actually unfolds the way Lee predicts is anyone’s guess. But in a landscape saturated with fear and gloom, his historical perspective brings a refreshing twist: maybe, just maybe, we’re closer to the bottom than it feels.

So next time you see a market dip and feel the urge to panic, remember the Cuban Missile Crisis… and maybe buy the dip with a smirk.

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Roman B.

I have 6 years of writing experience on several leading websites dealing with cryptocurrencies and other investments. I have been in the Web3 sector for a similar amount of time and have collaborated on several projects from NFT to P2E. My previous experiences: Business2Community.com, TradingPlatforms.com, CryptoSvet.