Hall of Fame Investor Richard Bernstein has warned that Bitcoin is in a bear market. Richard is the CEO and CIO of Richard Bernstein Advisors. A management fund that manages $ 4.7 billion and provides investment advisory services to over 10,000 clients.
On Monday, Bernstein was on CNBC’s Trading Nation speaking about bull markets. Bitcoin has been in a bull market for almost a year. And although the asset has risen up during this time, Bernstein suggests that this trend is unsustainable.
He said people are leaving the assets positioned to make a profit. Tracking cryptocurrencies that he said are “pretty wild”.
Bitcoin is a bubble
CEO Richard Bernstein named the digital asset and said it was a bubble. He says the asset is currently in a bear market, but everyone is ignoring the assets that are actually in a bull market.
The real bull market is actually in oil, but everyone ignores the market. Not much is said about it, despite the fact that the asset is up 42%.
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Reference to the stock exchanges, he said, “Bitcoin is in a bear market and everyone loves their assets. And oil was in a bull market and basically you never heard of it. People don’t care.
Amber has been on Wall Street for years, calling oil the most neglected bull market. Explain that the big bull market was actually in commodities, not cryptocurrencies. The CEO believes the rush to own cryptocurrencies has resulted in a major parabola.
“The bubble differs from speculation in that it permeates society,” he said. “It’s from the financial markets.” Expand this by pointing out that cryptocurrencies and other tech stocks are now being discussed in places like cocktail parties
Bernstein on how this can affect your portfolio
Bernstein points out what he believes is the source of growth and believes that ultimately the source of growth lies in energy and materials, as well as industry.
According to the CEO, you want to be on the winning team. And, in his opinion, the winning team has always been in the energy sector.
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“If you’re on the other side of the seesaw next or two, maybe five years, your portfolio could be hit hard,” the CEO said of crypto. “The seesaw aspect you want to be is kind of an inflationary aspect that most people don’t invest in.”
Bitcoin is down 38 percent from its all-time high of $ 64,000 in April. While the asset has performed tremendously well, Richard Bernstein believes that Bitcoin has finally pulled back into a bear market.
Bitcoin down 38% from all time high | Source : BTCUSD on TradingView.com
Right now, Bernstein is pretty pessimistic about technology stocks, which he made clear in 2019. He doesn’t believe in stocks that are designed to disrupt the current economy.
Technology stocks have grown significantly in recent years. For most investors, portfolios contain a fair amount of technology stocks. The stocks have also shown tremendous growth. Disruption is a word that gets thrown around a lot in the tech industry. But Bernstein is still unimpressed, calling the tech sector a cyclical sector in 2017.
Regarding inflation, he predicted that inflation will definitely shock investors. “A huge inflation loss, but everyone thinks it’s only temporary,” he said, referring to economists who said it was only temporary. But he hopes the tide will turn at some point.
Featured image by Luv Murrell - Unsplash, chart from TradingView.com