After warning investors of a major market shift in November 2021, billionaire Chamath Palihapitya says the stock market is already reaching a long-term bottom.
In a new episode of the All-In Podcast, the venture capitalist say that the stock market is gearing up for a burst to the upside.
According to Palihapitiya, who was sharp enough to foresee the 2022 crypto crash, the surge will likely be supported by investors who missed the early stages of the market’s rise this year.
“I think the main picture I’m trying to get is, where do I think the stock market is going? All roads, at least right now, look like the market is about to move significantly higher.
The reason is not whether the final rates are 2% or 3.5%. I don’t think that matters that much. What’s more important is the trillions of dollars that sit on the sidelines or in other defensive assets that then need to be turned around and put back into growth assets once you know the worst is behind you and I think that’s what a market always does searches before the real sentiment changes.
What’s important to note is that by the time most people find out that sentiment has changed, it’s already too late. I think right now, over the next 12 to 18 months, the market is really bottoming out. It’s before the Fed cuts. It’s when rates will still be relatively high, but the really astute, astute in this market will get ahead of it, and they’ll start buying what they think will be an eventual rally.
Palihapitiya also says most retail and institutional investors are currently on the sidelines and likely to ride the next wave of stories that will propel the stock market to greater heights.
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