Stocks Are in a 'Euphoric Moment,' Says Novogratz

Watch Stocks Are in a 'Euphoric Moment,' Says Novogratz - Bloomberg on Dailymotion

Transcript

00:00I just want to get your commentary on what's happened in the last 48 hours with the sell-off

00:03and the volatility that we have seen. How do you explain it? Yeah, listen, there are a few

00:08things that happened. One, crypto had a pretty awesome few months, right? I mean, Ethereum went

00:14up almost 3x. Solana went up a ton. And so markets at one point get a little bit long and it takes

00:22just a little bit for people to get nervous and some of the leverage to come out. We saw what

00:27looked like some big Chinese mining selling. You also had Arthur Hayes, who's one of the

00:34real thought leaders around crypto. He put out a pretty bearish commentary around Hyperliquid.

00:40Hyperliquid is the only token in the top 10 that didn't exist a few years ago, right? It's

00:47a decentralized version of Binance, if you want to think about it. And it's a pretty spectacular

00:53story with the amount of growth it had. And Arthur said, hey, wait a minute, I think it's

00:57gone too far. The founders are going to sell. And so Hyperliquid really got hit the hardest

01:03and that, I think, kind of hit some of the overall sentiment in the market. And so I think

01:08this is just a pullback. You know, crypto has been kind of soft. Bitcoin's been kind of soft

01:13because a lot of the action moved away from Bitcoin. But if you had told someone four months

01:19ago that you're going to be nervous with Bitcoin at 112, they would have had a big grin on their

01:24face. Right. And so you have to keep things in context. We're still up significantly on

01:29the year, both Bitcoin, ETH and Solana. Speaking of keeping things in context, a lot

01:34of people have been saying that crypto price movement can foretell stock prices as well,

01:39more broadly. You know, it's like a leading asset class. Do you subscribe to that? Do you believe

01:43that? I'm not sure. Listen, I think sometimes it feels leading and sometimes it feels lagging.

01:49Um, we are in a euphoric moment in stocks and there is a, a lot of, uh, excitement all around

02:00this AI theme. AI is powerful. It is going to change the way, uh, we do things. I was literally

02:07just in a meeting with my management team talking about AI and Galaxy and every single C-suite

02:12in the world is having that same conversation. And so that creates bubble-like excitement.

02:19Um, and we've got valuations in the, in the NASDAQ and the S and P as high as we see them.

02:27And so it's a really hard market, uh, cause it's got huge momentum and excitement around

02:32a real story. Uh, but it's got valuations that get you really nervous and the interconnectivity

02:39of NVIDIA, open AI, Oracle, the vendor financing, you know, web, uh, that gets you nervous, uh,

02:52like valuation creating more valuation. Um, and so I think you've got a market that's,

03:00that's nervous. That doesn't mean it's not going to go a lot higher, right? The last,

03:04the last leg of great bull markets always surprises people on how powerful it can be.

03:10And I'm not saying this is the last leg, but it very well could be.