Bitcoin is bubble, but oil is most ignored bull market, Rich Bernstein says

Institutional Investor Hall of Famer Richard Bernstein is sounding the alarm at Bitcoin.

He warns that Bitcoin is a bubble and that crypto fever is pushing investors away from the market groups capable of making the biggest profits, especially oil.

“It’s pretty wild,” Richard Bernstein Advisors’ CEO and CIO told CNBC.Trading nation“on Monday.” Bitcoin was in a bear market and everyone loves the asset. And oil was in a bull market and you never really hear about it. People don’t care. “

Amber, who has spent decades on Wall Street, calls oil the most ignored bull market.

“We have this big bull market in commodities and everyone says it doesn’t matter,” he said.

WTI crude oil trades at its highest level since October 2018. On Monday it was $ 70.88, up 96% from last year.

Bitcoin up 13% in the last week but still down 35% in the past two months.

Although Bitcoin saw a meteoric surge last year, Bernstein suggests that going back to this level would not be sustainable. He believes the rush to own Bitcoin and other cryptocurrencies has become dangerously parabolic.

“Bubbles are different from speculation in that bubbles permeate society. They go outside financial markets,” he said. “With cryptocurrencies, and most likely most technology stocks, you can see that now where people talk about it at cocktail parties.”

Right now, Bernstein is most optimistic about companies that are not geared towards innovating or disrupting the economy. He went bearish on tech stocks in 2019.

“Your portfolio could suffer badly”

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