Wall Street is expecting a full-fledged return of bitcoin after a massive collapse.
Well-known American investor Rich Bernstein is concerned about the situation on the stock exchange. A trader waves a red flag over long-term assets ranging from Big Tech and Bitcoin to Reddit stocks and long-term bonds.
The investor, who has been working on Wall Street for decades, noted the need to review the portfolio and diversify for market players. According to him, «the markets were in the largest bubble in his entire career.» Rich Bernstein also warns that the situation is much bigger this time than in the dot-com and real estate bubbles.
New financial bubble
Bernstein is convinced that the US Federal Reserve has distorted the end of the long curve so badly that the market reaction is the maximum expected for long-term assets that will eventually take on a life of their own. The investor insists that interest rates in these categories of stocks will not rise, as this is the main Achilles heel of this bubble.
The expert added that in such situations, traders pay attention only to a limited range of assets, which is very short-sighted. At the same time, no one ever knows when moment X will come and the bubble will burst. Bernstein, who also works with US investment bank Merrill Lynch, advises paying attention to assets that have value in the face of inflation:
- commodities (oil, gas, grain),
The well-known investor clarified that bull traders have played an important role in the energy sector over the past 6-12 months. In addition, Wall Street is expecting a full-fledged return of bitcoin after a massive collapse. Despite everything, Bernstein does not believe the market will crash . Instead, he bets on fluctuations in the exchange. The trader noted that the market is balancing between overvalued long-term assets and a bubble against the rest of the world. In his opinion, if liquidity does not disappear quickly, which is unlikely, then the possibility of a large-scale entry into the bear market will be much less promising than people might think.
Bulls
These are traders who buy assets in advance, hoping that their price will rise over time in order to sell them profitably later. Bears are traders who bet on the fall in the value of certain assets.