The CEO of Richard Bernstein Advisors, an investment management company, warned that cryptocurrency is the largest financial bubble in history. He advises investors to stay away from “bubble assets”, which include cryptocurrencies.
Investment advisers see cryptocurrency as the largest financial bubble in history
Richard Bernstein, CEO of Richard Bernstein Consulting (RBA), shared his views on the direction of the cryptocurrency market and how investors should embrace 2022 in an interview with CNBC on Friday.
Bernstein is also the founder and chief investment officer of RBA, an independent registered investment manager. He has more than 39 years of experience on Wall Street. RBA manages the stocks and asset allocation of many world-leading broker-dealer companies, such as Merrill Lynch, Morgan Stanley, Ameriprise, UBS and Envestnet. The company also manages assets on behalf of several large institutional investors.
The CEO was asked what assets investors should avoid and how they should enter 2022. He explained that “the way to think about the market is to think of it as a seesaw,” adding:
On the one hand, we have everything I call bubble assets: technology, innovation, subversion, cryptocurrency-the whole group. On the other side of the seesaw, you actually own everything else in the world.
“Looking forward from 2022 to 2023, you want to be on the side of the’everything else in the world’ of that seesaw, because that is where the opportunity lies. That is where capital is scarce, and when our capital is scarce, your return will be even greater. High,” the investment adviser described.
Regarding the bubble, Bernstein was asked where the biggest risk is. He replied:
I think cryptocurrency is the biggest financial bubble in history. I think this is just a monster.
Bernstein speculated that cryptocurrencies could fall by 90% like some technology stocks during the 2000 bubble. “Again, people have to look back at history. In the tech bubble, people said the same thing when technology stocks fell 30%, 35%, 40%-but that was only the midpoint. They fell by about 75%, 80%. , 85%, 90%.”
The founder of Richard Bernstein Consulting concluded: “I think that before deciding that this is all over, people want to wait and see the real fundamentals and valuation.”
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