Cryptocurrency investor Michael Novogratz, while a big fan of Democrats, said the relentless rally in the stock market could end if Joe Biden wins t
Cryptocurrency investor Michael Novogratz, while a big fan of Democrats, said the relentless rally in the stock market could end if Joe Biden wins the U.S. presidency.
“Electing Biden and Harris, as much as it’s gonna be great for the country, is not going to be great for the market,” Novogratz said Friday in a Bloomberg TV interview, referring to the presidential contender and his running mate.
Novogratz speaks with Bloomberg’s Sonali Basak and Taylor Riggs on “Balance of Power.”
Novogratz, 55, founder of Galaxy Investment Partners and a former hedge fund manager, said the market was in a “liquidity-driven frenzy,” fueled by stocks like Amazon Inc. and Tesla Inc. Should Democrats take control in November, Wall Street can expect higher corporate and capital gain taxes, as well as increased rates for the wealthy, he said.
“Those frenzied bubbles normally end with policy response,” said Novogratz, who has described his politics as center-left. “Usually it’s the Fed’s action, but action on raising taxes could end this froth. I mean Amazon’s an amazing company, it’s doing amazing through Covid, but it’s trading a hundred times earnings on a gigantic multiple.”
The S&P 500 Index, which hit its 2020 low in March as coronavirus lockdowns began across the country, has since surged more than 40% as the Federal Reserve pumped liquidity into the market. Novogratz said he expects the Fed to be “even more dovish” at its next meeting, which could drive stocks higher and push gold to $2,500 to $3,000 an ounce.
Like many Wall Street Democrats, Novogratz said he thought Biden and Kamala Harris would be good overall for financial firms. In an earlier interview, he described Harris, a U.S. senator from California, as someone who “brings star power to the ticket.”
Fonte : www.bloomberg.com
