Investment advisor Bernstein sees crypto as a “monster” bubble – warns that markets could fall 90% – Bitcoin News
Investment firm CEO Richard Bernstein Advisors warns that cryptocurrencies are the largest financial bubble in history. He advises investors to stay away from bubble assets, which include cryptocurrencies.
Investment advisor sees cryptos as the largest financial bubble in history
Richard Bernstein, CEO of Richard Bernstein Advisors (RBA), shared his views on where the crypto market is headed and how investors should approach 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 over 39 years of experience on Wall Street. The RBA manages the stock and asset allocation of portfolios at several of the world’s leading broker-dealer firms including 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 to get into 2022. He stated that “the way to think about markets is by looking at them like a seesaw,” added:
On the one hand, we have what I would call bubble assets: technology, innovations, disruptions, cryptocurrencies – this whole group. And on the other side of the seesaw, you literally have everything else in the world.
“If you look from 2022 to 2023, you want to be on the side of the ‘Everything Else in the World’ competition because that’s where the chance lies. There is a shortage of capital there and if there is a shortage of capital your returns are higher, ”says the investment advisor.
Regarding bubbles, Bernstein was asked what the greatest risks are. He answered:
I think cryptos are the biggest financial bubble of all time. I think this is just a monster.
Bernstein speculates that cryptocurrencies, like some tech stocks, could fall as much as 90% during the bubble in 2000. “Once again you have to look at history. In the tech bubble, people said the exact same thing when tech stocks were down 30%, 35%, 40% – except that it was only halfway through. They went down by 75%, 80%, 85%, 90%. “
Richard Bernstein Advisors’ founder concluded, “I think you might want to wait to see the real fundamentals and valuations before deciding this is all over.”
What do you think of Bernstein’s advice? Let us know in the comment section below.
Kevin Helms
Kevin, a student of Austrian economics, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.
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