Economist David Rosenberg is warning investors the stock market and Bitcoin price are massive bubbles
Bitcoin price current rally has always been compared to a price bubble at the end of 2017. And recently, eminent economist and strategist David Rosenberg has warned investors that, the stock market and Bitcoin is a huge bubble that can explode at any moment.
David Rosenberg is warning investors the stock market and Bitcoin price are massive bubbles
A brief introduction to Rosenberg. Rosenberg was the leading North American economist of Merrill Lynch from 2002 to 2009. However, his comments are quite pessimistic but … mostly correct. According to him, the recession is almost inevitable.
The eminent economist and strategist David Rosenberg
In an interview with CNDC of “Trading Nation” last week, he stated:
“Based on our stock market valuation work, we are anywhere from 20% to 30% overvalued based on a whole bunch of different metrics.”
He alleviated the market negativity last spring on “Trading Nation”. He also insists he doesn’t hate stocks as Federal Reserve’s unprecedented support can last for years. It is important to be vigilant now.
“What’s holding the boot together is basically zero interest rates. As long as rates remain where they are, unless we have a real dramatic pullback in economic activity, this bubble that we’re in is probably not going to burst any time soon. We have to understand though we are investing in a bubble.”
The main indexes starting 2021 in record territory. The S&P 500 and Dow closed at all-time highs on Thursday, up 16.3% and 7.3% over the past year, respectively. The tech-heavy Nasdaq missed out on new record highs but had its best year since 2009 – up almost 44%.
Rosenberg is also issuing a warning against Bitcoin after it has skyrocketed. Specifically, Bitcoin surpassed $ 30,000 for the first time over the weekend and ended 2020 at a record high. After that, it continued to grow to $ 33,000, even up to $ 35,000 at times. Bitcoin has risen 305% this year, giving its best annual performance since 2017.ception is gold just finished its best year in a decade – a safe haven asset.
“The parabolic move in bitcoin in such a short time period, I would say for any security, is highly abnormal. What I want to do actually in the context of this bubbly stock market is invest in the areas that are not bubbly and that have a lot of catch-up potential. They do exist.”
Gold ended the year at $ 1,895.10 an ounce, one percent lower than its all-time high.
“It has 1/5 of the volatility that bitcoin does. I’ve been very bullish on gold, and I remain bullish on gold.”
The one exception is gold just finished its best year in a decade – a safe haven asset. Gold ended the year at $ 1,895.10 an ounce, one percent lower than its all-time high.
You can see the BTC price here.
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