Peter Thiel Speaks up in Davos
Our bloodhound continues to follow Peter Thiel’s every move; rumor has it that he will soon be moving to New York, or at least begin spending more time here. Peter’s Clarium Capital has posted solid numbers in its global macro strategy and has big plans to increase its asset base. We would not be surprised to see AUM reach $5 billion by mid-year, up from roughly $2.5 billion last we knew.
Thiel is in Davos shaking hands and padding his rolodex, he spoke with Becky Quick and had shared a few insights, which we will attempt to summarize below:
*Domestic Equity Market is not a screaming buy until the U.S. trade deficit goes to zero.
*We have a few years of tumoil ahead of us as the reversal of “mis-allocated capital” takes place.
*Fed can slowly change direction of markets, slowly but surely but throwing more money at system is a “strange cure” given easy credit caused the disease.
*He is wary of investing in ‘leveraged” plays like financials, and continues to like energy and technology.
*He likes tech, but not necessarily Microsoft; they are simply not innovating. Ditto on Dell, but he does prefer Google and Intel. Also select biotech themes.
You can see his interview with Becky Quick on CNBC here. We have been tough on the Peacock, but their Davos coverage is usually top notch and we appreciate the effort. It is a unique opportunity to talk to so many movers and shakers, and they take full advantage. Nice work, CNBC.
Getting back to Thiel, he takes a long term view, and likes technology. No bubble for tech, and few excesses need to be unwound. Although he took some grief with his comments over the the hype in Facebook, in which he has a position. Peter has more credibility with us than nearly any other talking head, and speaks his mind rather than talks his book.
The video below is only a few weeks old and gives Peter a chance to speak to several thematic issues he is focused on.
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