More

    After Nailing 2022 Collapse, Billionaire Chamath Palihapitiya Warns Stock Market in Midst of Worst Earnings Gap in 30 Years

    Billionaire Chamath Palihapitiya is issuing a warning to investors, saying that the fundamentals of the US stock market are starting to look shaky.

    In a new All-In Podcast episode, Palihapitiya, who nailed the market meltdown last year, shares a chart from Bloomberg that shows the wide disparity between earnings and cash flows among S&P 500 companies.

    According to the Social Capital CEO, the gap between the two fundamental metrics is at its widest point in about three decades.

    “If you focus on the period of 2020 to 2024, what you see is the white line, which is net income adjusted for depreciation and amortization, and the blue line is cash flows from operation. So what does that mean? This the best 500 companies in the world.

    The white line is what you tell Wall Street in terms of what you make on paper. The blue line is what actually appears in the bank account. So why could there be a gap between what you tell somebody you made… versus what’s in the bank? Well the reason is because there’s all kinds of accounting tricks that you can use… 

    Right now, we have the worst earnings situation, so the worst gap between what we’re telling people versus what is actually in the bank account that we’ve had for 30 years since 1990. So it just brings into focus the fact that we may be in the last few innings of trying to make sure this all looks okay.”

    Source: All-In Podcast

    According to the billionaire venture capitalist, the weak cash flows of S&P 500 companies could suggest that a stock market meltdown is on the horizon.

    “One faction of the investing world who thinks that this earnings recession is actually at hand would be kind of right and then what they would say is that once we all realize that these earnings are fake and you reset down 15%, that’s when you get to the mid-3,000 [points] in the S&P 500…

    I don’t know if that’s true or not but there’s more and more evidence that would support that the way that they see the world could be credible.”

    At time of writing, the S&P 500 is trading for 4045.65 points.

    I

    Stay in the Loop

    Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

    Latest stories

    - Advertisement - spot_img

    You might also like...

    bitcoin
    Bitcoin (BTC) $ 27,183.28
    ethereum
    Ethereum (ETH) $ 1,893.54
    tether
    Tether (USDT) $ 0.999799
    bnb
    BNB (BNB) $ 306.82
    usd-coin
    USD Coin (USDC) $ 1.00
    xrp
    XRP (XRP) $ 0.52003
    staked-ether
    Lido Staked Ether (STETH) $ 1,891.19
    cardano
    Cardano (ADA) $ 0.376148
    dogecoin
    Dogecoin (DOGE) $ 0.072772
    solana
    Solana (SOL) $ 21.16
    matic-network
    Polygon (MATIC) $ 0.900016
    tron
    TRON (TRX) $ 0.081757
    litecoin
    Litecoin (LTC) $ 96.67
    polkadot
    Polkadot (DOT) $ 5.27
    binance-usd
    Binance USD (BUSD) $ 1.00
    shiba-inu
    Shiba Inu (SHIB) $ 0.000009
    avalanche-2
    Avalanche (AVAX) $ 14.51
    dai
    Dai (DAI) $ 1.00
    wrapped-bitcoin
    Wrapped Bitcoin (WBTC) $ 27,204.29
    uniswap
    Uniswap (UNI) $ 5.08
    leo-token
    LEO Token (LEO) $ 3.59
    chainlink
    Chainlink (LINK) $ 6.39
    cosmos
    Cosmos Hub (ATOM) $ 10.67
    okb
    OKB (OKB) $ 45.98
    monero
    Monero (XMR) $ 147.05
    the-open-network
    Toncoin (TON) $ 1.74
    ethereum-classic
    Ethereum Classic (ETC) $ 18.17
    stellar
    Stellar (XLM) $ 0.092271
    bitcoin-cash
    Bitcoin Cash (BCH) $ 114.83
    filecoin
    Filecoin (FIL) $ 4.94
    internet-computer
    Internet Computer (ICP) $ 4.82
    true-usd
    TrueUSD (TUSD) $ 1.00
    lido-dao
    Lido DAO (LDO) $ 2.29
    aptos
    Aptos (APT) $ 8.94
    quant-network
    Quant (QNT) $ 115.37
    hedera-hashgraph
    Hedera (HBAR) $ 0.050524
    crypto-com-chain
    Cronos (CRO) $ 0.059567
    arbitrum
    Arbitrum (ARB) $ 1.22
    near
    NEAR Protocol (NEAR) $ 1.62
    vechain
    VeChain (VET) $ 0.019852
    the-graph
    The Graph (GRT) $ 0.128988
    apecoin
    ApeCoin (APE) $ 3.13
    algorand
    Algorand (ALGO) $ 0.152381
    the-sandbox
    The Sandbox (SAND) $ 0.567875
    eos
    EOS (EOS) $ 0.908963
    paxos-standard
    Pax Dollar (USDP) $ 0.999435
    frax
    Frax (FRAX) $ 0.998216
    elrond-erd-2
    MultiversX (EGLD) $ 38.11
    rocket-pool
    Rocket Pool (RPL) $ 49.28
    optimism
    Optimism (OP) $ 1.48
    render-token
    Render (RNDR) $ 2.59
    aave
    Aave (AAVE) $ 63.32
    fantom
    Fantom (FTM) $ 0.32071
    decentraland
    Decentraland (MANA) $ 0.487556
    tezos
    Tezos (XTZ) $ 0.908204
    blockstack
    Stacks (STX) $ 0.6164
    theta-token
    Theta Network (THETA) $ 0.836939
    rocket-pool-eth
    Rocket Pool ETH (RETH) $ 2,032.88
    axie-infinity
    Axie Infinity (AXS) $ 7.17
    immutable-x
    ImmutableX (IMX) $ 0.793974
    flow
    Flow (FLOW) $ 0.728887
    usdd
    USDD (USDD) $ 0.999917
    havven
    Synthetix Network (SNX) $ 2.35
    neo
    NEO (NEO) $ 10.53
    gala
    GALA (GALA) $ 0.030377
    bitdao
    BitDAO (BIT) $ 0.496837
    kucoin-shares
    KuCoin (KCS) $ 7.48
    whitebit
    WhiteBIT Token (WBT) $ 4.90
    curve-dao-token
    Curve DAO (CRV) $ 0.849229
    radix
    Radix (XRD) $ 0.067391
    bitget-token
    Bitget Token (BGB) $ 0.464565
    injective-protocol
    Injective (INJ) $ 7.88
    bitcoin-sv
    Bitcoin SV (BSV) $ 32.83
    gatechain-token
    Gate (GT) $ 4.45
    maker
    Maker (MKR) $ 674.74
    klay-token
    Klaytn (KLAY) $ 0.185304
    gemini-dollar
    Gemini Dollar (GUSD) $ 1.00
    iota
    IOTA (MIOTA) $ 0.20487
    conflux-token
    Conflux (CFX) $ 0.269599
    bittorrent
    BitTorrent (BTT) $ 0.00000059257877
    kava
    Kava (KAVA) $ 1.01
    pepe
    Pepe (PEPE) $ 0.000001
    chiliz
    Chiliz (CHZ) $ 0.101558
    tokenize-xchange
    Tokenize Xchange (TKX) $ 6.43
    pax-gold
    PAX Gold (PAXG) $ 1,948.45
    casper-network
    Casper Network (CSPR) $ 0.045396
    mina-protocol
    Mina Protocol (MINA) $ 0.5462
    xdce-crowd-sale
    XDC Network (XDC) $ 0.035768
    terra-luna
    Terra Luna Classic (LUNC) $ 0.000085
    compound-ether
    cETH (CETH) $ 37.99
    sui
    Sui (SUI) $ 0.928788
    gmx
    GMX (GMX) $ 55.68
    tether-gold
    Tether Gold (XAUT) $ 1,948.61
    dash
    Dash (DASH) $ 42.52
    huobi-token
    Huobi (HT) $ 2.94
    ecash
    eCash (XEC) $ 0.000024
    frax-share
    Frax Share (FXS) $ 6.54
    trust-wallet-token
    Trust Wallet (TWT) $ 1.07
    frax-ether
    Frax Ether (FRXETH) $ 1,893.54
    woo-network
    WOO Network (WOO) $ 0.239811