Rich Bernstein, a member of the US Institutional investors Hall of Fame, warned on Monday that the market could be in the "biggest bubble of his career".
Bernstein, who has worked on Wall Street for decades, issued a warning about long-term assets, including large technology stocks, bitcoin, retail clustered stocks and long-term bonds.
"the Fed has so distorted the long-term curve that we see a very natural response to long-term assets and then have a life of our own," Bernstein said. Anyone holding these long-term assets must firmly believe that long-term interest rates will not rise because this is the nemesis of the bubble. "
Bernstein believes the current background is more dangerous than it was in June, when he warned that Bitcoin was a bubble.
"when you get into a bubble, people become very short-sighted," he says. They only focus on very small areas of investment. People always say to me, 'all right. You are so smart, tell me when the bubble will burst.' The answer is that no one knows. "
Bernstein suggests investing in assets that have pricing power in an inflationary environment. "this will lead you to commodities, raw materials, energy and so on. What I find very interesting is that the energy market has been in a big bull market for the past six to 12 months, and everyone says it is unsustainable. Bitcoin has been in a bear market, but everyone is waiting for it to return. "
Despite his epic bubble warnings, Bernstein did not predict that the entire market would collapse. He regards the market as a seesaw.
"unless liquidity dries up very quickly, which seems unlikely, a big bear market may be much less likely than people think," he said. "