[ad_1]
Chamath Palihapitiya speaking at the Delivering Alpha 2017 conference in New York City on September 12, 2017.
David A. Grogan | CNBC
Consumers have sat at home for months and months, and with no typical things to spend money on, bank account assets are increasing. And that’s a positive sign for stocks, according to Chamath Palihapitiya, CEO of Social Capital.
He said the combination of consumer savings and cash in the money markets that would hit an all-time high will serve as “rocket fuel” for assets.
“Whether it’s housing markets, or capital purchases like cars or vacations, or stocks for that matter – if we’re still stuck, these things are just going to go on the moon for a while. “, he said Thursday. on CNBC’s “Halftime Report”.
“You just have to be long. Anyone who is trying to figure out why you shouldn’t be long, I think, is going to regret it for at least the next 18-24 months.”
His comments came as major averages hit new all-time highs on Thursday, after also rising on Wednesday, despite unrest in Washington. Investors are hopeful that a Democrat-controlled Congress will lead to more stimulus payments for consumers.
Palihapitiya said that with stocks at record highs, investors shouldn’t just be ditching names that have worked. His comments were specifically related to his position in Tesla.
Despite the stock’s 750% gain over the past year, Palihapitiya said he believes stocks can double or even triple.
“I don’t understand why people are so focused on selling products that work,” he said. “When things work out, you get paid to stick with people who know what they’re doing. He’s a guy. [Elon Musk] who has always been one of the most important entrepreneurs in the world. And then why bet against him, ”he said.
Palihapitiya also weighed on the bitcoin record, with the cryptocurrency surpassing $ 40,000 for the first time on Thursday.
“It probably goes to $ 100,000, then $ 150,000, then $ 200,000,” Palihapitiya told CNBC. “In what period? I don’t know. [Maybe] five or 10 years, but it’s okay there. “
Online finance startup SoFi announced on Thursday that it would go public by merging with a blank check company run by Palihapitiya.
– CNBC’s Fred Imbert contributed reporting.
To subscribe to CNBC PRO for exclusive news and analysis and live business day programming from around the world.
[ad_2]
Source link