Original title: "Wall Street veteran" warning: this is the biggest bubble I have ever seen in my career!
Source: Wall Street
Rich Bernstein, chief executive of Richard Bernstein Advisors, said this week that the market is in a huge bubble, but unless liquidity dries up quickly, the chances of a large bear market may be much lower than people think.
Bernstein said in an interview with CNBC on Monday:
We are probably in the biggest bubble of my career.
As a veteran with decades of experience on Wall Street, Bernstein also hinted that the bubble was larger than the dotcom bubble and the real estate bubble.
Bernstein believes it is more dangerous now than in June. At the time, he warned that Bitcoin was a bubble.
When caught in a bubble, people become very short-sighted. They only focus on very small areas of investment.
At the same time, Bernstein warned against long-term assets such as large technology companies, bitcoin and long-term bonds. He believes that the Fed has distorted the trend of long-term assets, but anyone holding these long-term assets must be convinced that long-term interest rates will not rise because it is the nemesis of the bubble.
Despite the bubble warning, Bernstein doesn't think the market will collapse. He thinks the market is a seesaw.
Bernstein said:
We weigh these vastly overvalued long-term assets against bubbles.
Unless liquidity dries up quickly, which seems unlikely, the chances of a massive bear market may be much lower than people think.
Bernstein also recommends investing in assets that have pricing power in an inflationary environment, pointing out:
This will lead investors to commodities, raw materials, energy and other sectors.
What I find very interesting is that the energy market has been in a bull market for the past six to 12 months, and everyone says it is unsustainable. When Bitcoin is in a bear market, everyone is waiting for it to rebound.
As of Monday's close, the S & P 500 and Dow JonesIndex and NASDAQThe index is 1% below its all-time high.
