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Own everything but bubble assets tech, crypto: investor Rich Bernstein


Institutional Investor hall of famer Rich Bernstein is a market bull whose playbook excludes some of Wall Street’s most popular groups.

He blames the unstable see-saw dynamics in the marketplace.

We have everything I call “the bubble assets” on one side. tech, innovation disruptionRichard Bernstein Advisors CIO and CEO, Richard Bernstein Advisors CIO said that cryptocurrencies were “weak” in his comments to CNBC’s CNBC’s.Trading NationFriday, You have virtually everything in the world on the other side. If you look at 2022 and 2023 you will see that you would like to be on the all other side of the globe.

Bernstein thinks that a lack of capital can lead to opportunities.

He said, “That’s where you get higher returns.”

Energy was his top pick, and he listed it as one of the best plays in 2021. Bernstein called earlier this year. oilThe most overlooked bull market. It could become the growth group in 2022, according to him.

It Energy Select Sector SPDR FundThe group tracking tool,, is up by 51% this year.

Bernstein stated in a letter to CNBC that the FCF had been “the last time.” [free cash flow]The yield of the sector’s energy was so high in relation to either the Tech sector or the market, it was about the Tech bubble. For a decade energy performed better than the Tech Sector. The sector’s dividend yield is >3X the S&P 500’s dividend yield.”

Bernstein ran the strategy department at Merrill Lynch. warns today’s “bubble assets”Just like in the early 2000s, this could severely impact investors.

He said that valuations are extremely high, and it is important to keep in mind that the valuation is far more important than the story.

His acknowledgment of the fact that the stories of the Internet and mobile communications that were told during 2000’s tech bubble turned into reality in the ensuing decade. It took many years for the company to make its profits.

“If you have invested in the Nasdaq 100Bernstein stated that it would take 14 years for companies like these to reach profitability. I think something tells me people don’t pay attention to valuations today, and also that they aren’t expecting it to take them 14+ years to break even.

Crypto is a “monster” bubble

Bernstein views cryptocurrency also as a problem. Last June on “Trading Nation,”He said that bitcoin ownership was dangerously perilous.

Bernstein stated that “Cryptos have been the largest financial bubble in history.” This is a huge one.

Closed Friday, bitcoinThe past month has seen a drop of 30%. However, it is still at 63% for the year.

Bernstein believes bitcoin may plummet as high as 90%, just as tech stocks did during the 2000 bubble.

Bernstein said, “It is important to take time to examine the real fundamentals of the company and to evaluate the valuations before making a decision that the game is over”.