Billionaire Chamath Palihapitiya sees US stocks rebounding rapidly as trillions of dollars rush back in from the sidelines

A tech billionaire is Chamath Palihapitiya.

Brendan McDermid.

If stock markets follow recent trends, trillions of dollars could be sitting on the sidelines waiting to jump back in, as billionaire investor Chamath Palihapitiya has said.

In his All In show at the weekend, Palihapitiya said that he thinks markets have been pushed all out by the recent falls. The likelihood of the Federal Reserve hiking interest rates sharply in 2022, has caused stocks to drop.

There is a ton of trillions of dollars that are waiting to be found a home. He pointed to people with money market accounts.

We're back to the races again, because of all this other money that's gonna say, 'I gotta get back in'.

"If you look at all the corrections in the world of computer- traded funds and passive money, all of them are so fast, you whip it back and you go," he said.

The billionaire tech investor said he wasn't sure if the sell-off was a buying opportunity or just a view of the past.

9 of the 30 high-conviction global stocks that are set to dominate the market in 2022 are expected to provide returns above 40% and 1 is set to surge over 200%, according to a new report.

The S&P 500 is down 2.5% for the year so far in 2022. Tech stocks have been the hardest hit.

As the Fed prepares to raise interest rates this year, investors have dumped speculative technology companies. Financials and retailers that are linked to interest rates and the health of the economy are starting to look more attractive.

The Fed probably waited a little too long to raise interest rates to tackle inflation, said Palihapitiya, a former Facebook executive who has launched many high profile acquisition companies.

"We're just sort of absorbing that reality, co-hosted with investors David Sacks and David Friedberg," he said. "I think we puked it all out for the most part," he said.

The big difference between now and 50 years ago is how many computers are involved in the trade, how much passive money is involved that own assets, and how much of this stuff is sitting on the sidelines still in money market accounts.

Business Insider has an original article.