says<\/a> that the stock market is gearing up for a burst to the upside.<\/p>\nAccording to Palihapitiya, who was keen enough to foresee the coming 2022 crypto crash, the surge will likely be supported by investors who missed out on the early stages of the market’s ascent this year.<\/p>\n
\u201cI 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.<\/em><\/p>\nThe reason isn’t whether terminal rates are 2% or 3.5%. I don’t think that matters that 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.<\/em><\/p>\nWhat’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.”<\/em><\/p>\nPalihapitiya also says that most retail and institutional investors are currently sitting on the sidelines and are likely to ride the next wave of narratives that will push the stock market to greater heights.<\/p>\n