Richard Bernstein Advisors, the CEO of an investment management company warns cryptocurrency is the largest financial bubble in human history. He advises investors to stay away from “bubble assets,” which include cryptocurrencies.
A Cryptos Investment Advisor Sees the Biggest Money Bubble in History
Richard Bernstein (CEO of Richard Bernstein Advisors) shared his views on the direction of crypto markets and what investors should do in 2022 during a Friday interview with CNBC.
Bernstein was also the co-founder and chief investment officer at RBA. RBA is an independent registered investment management company. His experience spans more than 39 year on Wall Street. RBA manages equity and asset allocation of portfolios at several of the world’s leading broker-dealer firms, such as Merrill Lynch, Morgan Stanley, Ameriprise, UBS, and Envestnet. It also manages the assets of large institutional investors.
He was asked which assets should investors avoid and what he thought about 2022. He explained that “the way to think about the markets is to think about it as a seesaw,” adding:
On one side, we have all that I would call the bubble assets: tech, innovations, disruptions, cryptocurrencies — that whole group. You also have virtually everything in the rest of the world on the opposite side.
“Looking at 2022 into 2023, you want to be in the ‘everything else in the world’ side of that seesaw because that’s where the opportunity is. That’s where there’s scarcity of capital and when we have scarcity of capital that’s where your returns are higher,” the investment adviser described.
Bernstein was asked his opinion on bubbles. He responded:
Cryptos may be the greatest financial bubble in history. This is a huge bubble.
Bernstein suggests that cryptocurrency could plummet as high as 90%, just as tech stocks did during the 2000 bubble. “Once again one has to look at history. In the tech bubble, people said the exact same thing when tech stocks were down 30%, 35%, 40% — except that was only the halfway point. They went down about 75%, 80%, 85%, 90%.”
The founder of Richard Bernstein Advisors concluded: “I think one wants to wait to look at the true fundamentals and look at the valuations before deciding that this is all over.”
What do you think about Bernstein’s advice? Leave your comments below.
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