Institutional Investor Hall Of Famer Rich Bernstein Warns of “Bubble Assets” referring to Cryptos

Rich Bernstein - Getty Images
Rich Bernstein - Getty Images

Rich Bernstein — an institutional investor hall of famer — is a market bull who isn’t comfortable about the “risk see-saw dynamic playing out in the marketplace”.

“On one side, we have all that I would call the bubble assets: tech, innovation disruption, cryptocurrencies,” the Richard Bernstein Advisors CEO and CIO told CNBC’s “Trading Nation” on Friday. “On the other side of this see-saw, you have literally everything else in the world. I think if you’re looking at 2022 into 2023, you want to be in the everything else in the world side of that see-saw.”

Bernstein believes a scarcity of capital will spell opportunities.

“That’s where your returns are higher,” he said.

The investor picked energy as a favorite. He said that the group is a top play coming into 2021. Earlier this year, Bernstein said that oil is the most ignored bull market. Now, Bernstein believes that oil could be the growth group of 2022.

The Energy Select Sector SPDR Fund, which tracks the group, is already up 51% so far this year.