Mike Novogratz likes stocks, bitcoin ahead of the election: 'The liquidity tsunami is just too big'

Published Fri, Oct 23 202010:27 AM EDT

(This story is for CNBC Pro subscribers only). Billionaire investor Michael Novogratz said Friday he's bullish on both stocks and cryptocurrencies despite the uncertainty around the upcoming election and the shape of the economic recovery. The Galaxy Digital CEO said on CNBC's " Squawk Box " that he expects a Democratic sweep in next month's election, with Joe Biden defeating President Donald Trump and Democrats taking the Senate. The possibility of higher corporate and capital gains taxes under a Biden administration has led some to predict weakness for certain sectors , but Novogratz said stimulus from Congress and the Federal Reserve would overcome those concerns. "For markets, I think the bigger story is liquidity ... we're going to have some volatility around Joe Biden's tax plan and maybe it gets people a better chance to buy stocks, but people are going to buy dips," Novogratz said. "I had been bearish at one point , but I finally had to wave the white flag. The liquidity tsunami is just too big." Novogratz said he would like to see some sort of stimulus package before the end of the year but believed waiting until early 2021 would not hurt the equity market. He said he's currently buying dips in the market. "Markets look forward. They know the juice is coming, and when the juice is coming you're not going to get too bearish," he said. Novogratz is also a major investor in Bitcoin, and he said Wednesday's announcement by PayPal that it was allowing customers to use cryptocurrencies was a sign of things to come. Bitcoin has gained about 14% week to date for its best stretch since July. "I think that's in some ways the Shot Heard 'round the world on Wall Street. Paypal has 346 million accounts. They're the 30th biggest bank in the U.S. in deposits. So all of a sudden every financial institution says 'wait a minute, what am I doing?'" The former hedge fund manager predicted a rebuilding of the U.S. financial infrastructure over the next decade, with major credit card companies being the next to embrace cryptocurrency. He said the coronavirus crisis was accelerating the shift to cryptos. Watch the full interview above.

Michael Novogratz

Anjali Sundaram | CNBC

(This story is for CNBC Pro subscribers only).

Billionaire investor Michael Novogratz said Friday he's bullish on both stocks and cryptocurrencies despite the uncertainty around the upcoming election and the shape of the economic recovery.

The Galaxy Digital CEO said on CNBC's "Squawk Box" that he expects a Democratic sweep in next month's election, with Joe Biden defeating President Donald Trump and Democrats taking the Senate.