Billionaire Chamath Palihapitiya Expects Materially Higher Stocks After 2021 Crash

After warning investors of a dramatic market change in November 2021, billionaire Chamath Palihapitya claims the stock market has already reached a long-term bottom.

In a recent outbreak of the All-In Podcast, the venture investor predicts that the stock market will explode to the upside.

According to Palihapitiya, who predicted the 2022 crypto meltdown, the spike would likely be supported by investors who lost out on the market’s early phases this year.

Palihapitiya claims that: 

“I think the most important view that I’m trying to get to is where do I think the equity market is going to go? All roads, at least right now, look like the market is getting set to go materially higher.

The reason isn’t whether terminal rates are 2% or 3.5%. I don’t think that matters that as much. What matters more are the trillions of dollars that are sitting on the sideline or in other defensive assets that need to then pivot around and get put back into growth assets once you know that the worst is behind us, and I think that’s what a market always looks for before real sentiment changes.

What’s important to note is that by the time most people figure out that the sentiment has changed, it’s already actually too late. I think right now, in the next 12 to 18 months is really when the bottom is put into the market. It’s before the Fed starts cutting. It’s when rates are still going to be relatively high but the really astute, sharp in this market will get ahead of it, and they will start to buy what they think will be an eventual rally.”

According to Palihapitiya, most institutional and retail investors are currently idling their capital and are likely to depend on the upcoming wave of narratives that will force the stock market to new heights.