Rich Bernstein, an Institutional Investor Hall of Fame and founder of Richard Bernstein Advisors, has spent decades on Wall Street. He rarely makes statements in the media. This is why investors pay great attention to his comments. Recently, Bernstein has voiced concerns about long-duration assets ranging from Big Tech to bitcoin to Reddit rebellion stocks to semipermanent bonds.
"We are right in maybe the biggest bubble of my career," Bernstein stressed.
It sounds rather alarming. When making an analysis, Richard Bernstein Advisors experts are guided by macroeconomic trends, not by a certain group of stocks. They view the market as part of the global economy.
"When you get into a bubble, people become very myopic. They look only at a very small universe of investments. People always say to me ‘Okay. Well, you’re so smart. When is the bubble going to burst?’ And, the answer is nobody knows," he said.
Bernstein is sure of one thing. The collapse of the bubble will lead to an increase in prices for commodities and energy carriers.
Nevertheless, some reputable agencies strongly disagree with the economist, betting on further growth of the US stock market. Earlier, Goldman Sachs raised its forecast for the S&P 500 index to 4.700 by the end of the year. It means that the index will rise by a little more than 6% from the current levels. The main drivers for the stocks’ growth are strong earnings reports and the negative key rate.
