SPAC king Chamath Palihapitiya on Tuesday said the U.S. companies are relatively attractive versus the rest of the world and delved into what it would take to produce an “economic miracle” in the country.
What Happened: Sharing three charts from the Financial Times, Palihapitiya said the rest of the world is falling behind the U.S. companies. The percentage share of the U.S. companies in the MSCI World Index, a proxy for global growth, has been on the rise, with U.S. companies now accounting for over 60% of the total. The proportion of U.S. companies has been increasing steadily since 2010.
The fund manager also noted that non-U.S. companies trade at a discount to their U.S. peers. The second chart showed that the relative valuation of MSCI All-Country, excluding the U.S., versus the S&P 500 Index, has been in negative terrain since 2010.
“You'd much rather own an American business doing X vs an equivalent company abroad doing the same thing,” Palihapitiya said. The premium at ...