Bitcoin (BTC) is in a Bubble, Invest in Oil Instead Says Renowned Investor Rich Bernstein

June 15, 2021 6:26 AM EDT

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Richard Bernstein, the famous stock market investor, says the oil market is the most ignored bull market right now as emerging traders focus on Bitcoin (BTC) and cryptocurrency assets.

Speaking to CNBC, Bernstein argued that Bitcoin is trading in a bubble.

“It’s pretty wild. 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,” he said.

“Bubbles differ from speculation in that bubbles pervade society. They go outside the financial markets. 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.”

On the same day that hedge fund manager Paul Tudor Jones said “things are "bat-sh** crazy" right now,” Bernstein’s comments reflect the sentiment among the old guard of hedge fund managers and famous stock market inventors.

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

Bernstein also believes that investors should focus on pro-inflation trades going forward.

“In six months or 12 months or 18 months, growth investors are going to be buying energy and materials and industrials because that’s where the growth is going to be,” Bernstein added.

“If you’re on the wrong side of the see-saw over the next year or two years, maybe five years, your portfolio could suffer a lot. The side of that see-saw you want to be on is the kind of pro-inflation side which most people are not investing in.”

Crude oil prices are up nearly 47% on the year while Bitcoin is up 39.69% despite a major pullback from all-time highs.



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Sanford C. Bernstein, Tudor Investment Corporation, Bitcoin