CEO of capital markets firm Richard Bernstein Advisors Rich Bernsteinnoted that crypto reminds him of the tech bubble of the late 1990s.
Speaking in an interview with CNBC’s Trading Nation series, Bernstein told investors where to put their money next year instead of investing in bubble assets.
“The way to think of markets is to think of it as a seesaw. On one side, we have everything I would call bubble assets: technology, disruption to innovation, cryptocurrencies, this whole bunch. On the other side of this seesaw, you literally have everything in the world.
I think if you’re looking from 2022 to 2023, you want to be inside everything else on the world side of the seesaw because that’s where there is a shortage of opportunity and capital.”
The famous investor thinks that crypto could be worse than the “dot-com” bubble when the prices of tech stocks drop by as much as 90%.
“I think cryptos are the biggest financial bubble in history. I think it’s just a beast, and when I talked about technology, innovation, disruption, a lot of people immediately responded to me, but stocks fell a lot, about 35%.
… in the tech bubble, when tech stocks fell 30%, 35%, 40%, people said the same thing, but that was only half the way.
They’re down to 75%, 80%, 85%, 90%, and so I think we should wait to look at the real fundamentals and look at valuations before deciding it’s all over.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.