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


Institutional Investor Hall of Famer Richard Bernstein is sounding the alarm on bitcoin.

He warns bitcoin is a bubble and crypto fever is pushing traders away from the market teams positioned to seize the most important positive aspects, notably oil.

“It’s pretty wild,” the CEO and CIO of Richard Bernstein Advisors advised CNBC’s “Trading Nation” on Monday. “Bitcoin has been in a bear market, and everybody loves the asset. And, oil has been in a bull market, and it’s basically, you never hear anything about it. People don’t care.”

Bernstein, who has spent many years on Wall Street, calls oil the most ignored bull market.

“We’ve got this major bull market going on in commodities, and all people are saying is that it doesn’t matter,” he mentioned.

WTI crude oil is buying and selling round its highest ranges since October 2018. It settled at $70.88 on Monday and is up 96% over the previous 12 months.

Bitcoin could also be up 13% over the previous week, but it is nonetheless down 35% over the previous two months.

Even although bitcoin noticed a meteoric rise final 12 months, Bernstein suggests a run again to these ranges could be unsustainable. He believes the push to personal bitcoin and different cryptocurrencies has turn into dangerously parabolic.

“Bubbles differ from speculation in that bubbles pervade society. They go outside the financial markets,” he mentioned. “Certainly with cryptocurrencies now, and most likely with most technology stocks, you’re starting to see that happen where people are talking about them at cocktail parties.”

Right now, Bernstein is most bullish on firms that are not constructed to innovate or disrupt the economic system. He went bearish on technology stocks in 2019.

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