Chamath Palihapitiya spoke at the 2017 Delivering Alpha conference in New York on September 12, 2017.
David A. Grogan | CNBC
Consumers have been at home for months and months, and without the usual things to spend money on, bank account assets are on the rise. And this is a positive sign for the shares, according to Social Capital CEO Chamath Palihapitiya.
He said the combination of consumer and cash savings in money markets that would rise to a historic level would act as “missile fuel” for assets.
“Whether these are real estate markets or capital acquisitions, such as cars or vacations, or stocks in this case – if we’re still in a deadlock, these things will only go on the moon for a while,” he said. he on CNBC’s “Break Report” on Thursday.
“You just have to be long. Anyone trying to understand why you shouldn’t be long, I think they will regret at least the next 18-24 months “.
His comments came as major averages rose to new all-time highs on Thursday, after advancing on Wednesday, despite the turmoil in Washington. Investors hope a Democratic-controlled Congress will lead to more incentive payments for consumers.
Palihapitiya said that with shares at record values, investors should not just give up the name that worked. His comments were specifically related to his position in Tesla.
Despite the 750% gain in the share in the last year, Palihapitiya said he believes the shares could double or even triple.
“I don’t understand why people are so focused on selling things that work,” he said. “When things work, you’re paid to stay with people who know what they’re doing. This is a guy [Elon Musk] who has consistently been one of the most important entrepreneurs in the world. And then why bet against him, “he said.
Palihapitiya also weighed the record in bitcoin as the cryptocurrency topped $ 40,000 for the first time on Thursday.
“It will probably amount to $ 100,000, then $ 150,000, then $ 200,000,” Palihapitiya told CNBC. “In what period? I do not know. [Maybe] five or 10 years, but it goes there. “
On Thursday, online finance start-up SoFi announced it would go public by merging with a blank check company run by Palihapitiya.
– CNBC’s Fred Imbert contributed to the reporting.
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