Mike Novogratz, money manager of the fund digital Galaxy Digital Holdings Ltd., he said that the stock market is “unhinged from reality” as that increases, and that the small investors should get out before they collapse.
“We are in an irrational exuberance, this is a bubble,” he said Friday in an interview to Bloomberg TV. “The economy is slowing. We are going in and out of Covid, but the tech market reaches new highs every day. This is a speculative bubble classic”.
The heavy hitters of Wall Street, including Stan Druckenmiller and David Tepper, have been sounding the alarms about the stock market for months. However, the S&P 500 index has risen more, erasing the losses caused by the pandemic coronavirus, and registering its best quarter since 1998. The technology index Nasdaq 100 has had an increase even more dramatic.
Mike Novogratz warning about a possible collapse in the shares
Novogratz said that the increase of the actions, especially the technological, reminds him of the recovery of the price of Bitcoin in 2017, when the criptomoneda went from $ 8,000 to nearly $ 20,000 in a couple of months, due to the interest retailer before collapsing.
Mike said that we lost in great measure the recovery of the technological actions and that, in change, has been investing in Gold and Bitcoin, which also are benefiting from the liquidity that underpins the stock market.
“We are in valuations really dangerous on the side of growth, at the side of the technology,” he said. “If it’s Zoom or Tesla or Beyond Meat, any action that has a story, every rush. That concerns me.”
Novogratz invests in Gold and Bitcoin
Recently, Mike Novogratz, through an interview to CNBC announced that is to invest in Gold and Bitcoin, especially in the precious metal.
“My feeling is that Bitcoin outperforms gold, but I would say to the people who have much less than gold. Only for the volatility“.
Adding on gold: “The configuration macro is so perfect right now for something like gold. The central banks are still printing more money, as well gold is going to reach up to the old maximum of 1,950 dollars and will continue to move forward. This has just begun.“
In synthesis, the legendary Mike Novogratz recommends that you leave the bag and keep the money in asset havens such as Gold and Bitcoin. What do you think? Do you agree with Mike? Let us know your thoughts in the comment box.