Institutional Hall of Fame Richard Bernstein warns Bitcoin.
He warns that Bitcoin is a bubble and cryptocurrencies are keeping investors away from the market groups that have been placed to get the most profits, especially oil.
Richard Bernstein Advisors CEO and CIO told CNBC’s “Trading Nation” Monday that he was “quite wild.” “Bitcoin is in the bear market and everyone loves this asset, and oil is in the bull market and basically don’t hear anything. People don’t care.”
Bernstein, who has spent decades on Wall Street, calls oil the most neglected bull market.
“This major bull market is going on in commodities, and everyone says it doesn’t matter,” he said.
WTI crude is trading at its highest level since October 2018. Settled at $ 70.88 on Monday, up 96% over the past year.
Bitcoin could have increased by 13% in the past week, but has decreased by 35% in the last two months.
Bitcoin surged last year, but Bernstein suggests that returning to these levels is unsustainable. He believes that the rush to own Bitcoin and other cryptocurrencies has become a dangerous parabola.
“The bubble is different from speculation in that it pervades society. It’s out of the financial markets,” he said. “Sure, now in cryptocurrencies, and perhaps most tech stocks, we’re starting to see it happen where people are talking about them at cocktail parties.”
Bernstein is currently the most bullish on companies that are not built to innovate or disrupt the economy. He became bearish on tech stocks in 2019.
“Your portfolio can suffer a lot.”
“If you’re on the other side of the seesaw next year or two, maybe five years, your portfolio can be hit hard,” Bernstein said. “The seesaw aspect you want to be is a kind of inflation-promoting aspect that most people don’t invest in.”
Bernstein predicts that inflation will surprise many investors, but at some point it will change.
“In six, twelve and eighteen months, growth investors will buy energy, materials and industry, because that’s the source of growth,” Bernstein said.
Bitcoin is a bubble, but oil is the most neglected in the bull market, says Rich Bernstein
Source link Bitcoin is a bubble, but oil is the most neglected in the bull market, says Rich Bernstein