Sunday, February 1, 2009

Peter Thiel's Interview with Bloomberg in Davos

Clarium's Peter Thiel was interviewed in Davos by Bloomberg's Erik Schatzker on January 28. He shared his views on the financial markets in 2009.

A year ago, in January 2008, in Davos, Peter Thiel expressed a few correct insights that are summarized below :

*Domestic Equity Market is not a screaming buy until the U.S. trade deficit goes to zero.

*We have a few years of turmoil 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.

Watch Peter Thiel's interview with Bloomberg's Erik Schatzker on YouTube.

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