Chamath Palihapitiya speaks 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 with no typical things to spend money on, the assets in bank accounts are growing. And that’s a positive sign for stocks, said Chamath Palihapitiya, CEO of Social Capital.
He said the combination of consumer and cash savings in the money markets hitting record highs will act as “rocket fuel” for assets.
“Whether that’s housing markets, whether it’s capital purchases like cars or holidays, or stocks in this case – if we’re still stuck, these things will just go to the moon for a while,” he said Thursday. on CNBC’s “Halftime Report.”
‘You just have to be tall. Anyone who tries to understand why it shouldn’t take long, I think, will regret it for the next 18 to 24 months for sure. ‘
His comments came as the main averages rose to new record highs on Thursday, after also rising on Wednesday, despite the turmoil in Washington. Investors hope that a democratically controlled Congress will lead to more stimulus payments for consumers.
Palihapitiya said that with stocks at record highs, investors shouldn’t just ditch the names that have worked. His comments pertained specifically to his position at Tesla.
Despite the stock’s 750% gain in the past year, Palihapitiya said he believes stocks can double or even triple.
“I don’t understand why people are so focused on selling things that work,” he said. ‘When everything works, you get paid to stay with people who know what they are doing. This is a man [Elon Musk] who has consistently been one of the most important entrepreneurs in the world. And so why bet against him, ”he said.
Palihapitiya also weighed in on the record run in bitcoin as the cryptocurrency first hit $ 40,000 on Thursday.
“It’s probably going to $ 100,000, then $ 150,000, then $ 200,000,” Palihapitiya told CNBC. “In what period? I don’t know. [Maybe] five or ten years, but that’s where it goes. “
On Thursday, SoFi, an online finance start-up, announced it was going public by merging with a blank check company from Palihapitiya.
– CNBC’s Fred Imbert contributed to the reporting.
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