Former economist Merrill Lynch said that a bubble has formed in the cryptocurrency market, as well as in the stock market, but it is not yet ready to burst. The expert also told which assets are promising for investment in the current conditions. Writes about this RBC Crypto.
The biggest bubble has formed in the bitcoin market, David Rosenberg, president of Rosenberg Research and former chief economist at investment bank Merrill Lynch, warned in an interview with CNBC. He explained that the meteoric rise that the first cryptocurrency has seen in recent months is “abnormal.” At the moment, BTC costs $ 30 thousand, since March it has risen in price by 650%.
“Bitcoin’s parabolic growth in such a short period of time, I would say, is highly abnormal,” Rosenberg said.
He noted that a bubble has also formed in the stock market. Many assets are now overvalued by 20-30% in many ways, Rosenberg said. The strategist drew attention to the fact that the world economy remains in a difficult state.
Nevertheless, Rosenberg believes that the bubble in the markets is not yet ready to burst, it is supported by low interest rates. As long as they remain at a level close to zero, a sharp decline in the market should not occur, the strategist is sure.
He shared that, in the current environment, he is interested in investments in the industry, which did not perform well in 2020. The expert attributed to them the sphere of utilities and energy. Separately, Rosenberg singled out gold, which he called a reliable defensive asset.
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