Mike Novogratz, money manager of the Galaxy Digital Holdings Ltd. digital fund, said the stock market is „out of touch with reality“ as it rises, and that small investors should get out before it falls.
„We are in an irrational exuberance, this is a bubble,“ he said in an interview with Bloomberg TV on Friday. „The economy is slowing down. We’re in and out of Covid, but the technology market is reaching new highs every day. That’s a classic speculative bubble.
Wall Street heavyweights, including Stan Druckenmiller and David Tepper, have been sounding the alarm about the stock market for months. But the S&P 500 index has risen further, erasing losses from the coronavirus pandemic and recording its best quarter since 1998. The Nasdaq 100 technology index has risen even more dramatically.
Technology beats the Coronavirus
Mike Novogratz warns of a possible stock collapse
Novogratz said the rise in stocks, especially technology stocks, reminds him of the recovery in Bitcoin prices in 2017, when the crypto currency went from $8,000 to almost $20,000 in a couple of months, due to retail interest before collapsing.
Mike said he largely missed the recovery in technology stocks and has instead been investing in Gold and Bitcoin, which are also benefiting from the liquidity that underpins the stock market.
„We are in really dangerous valuations on the growth side, on the technology side,“ he said. „Whether it’s Zoom or Tesla or Beyond Meat, any stock that has a story, everyone is rushing. That worries me.“
Novogratz invests in Gold and Bitcoin
Recently, Mike Novogratz, through an interview with CNBC, announced that he is investing in Cryptosoft and Bitcoin, especially in the precious metal.
„My feeling is that Bitcoin beats gold, but I would tell people to have much less than gold. Just because of the volatility.“
Adding about gold: „The macro setup is so perfect right now for something like gold. Central banks are still printing more money, so gold is going to hit the old highs of $1,950 and keep going. This has just begun.“
In short, the legendary Mike Novogratz recommends getting out of the stock market and putting the money in active safe havens like Gold and Bitcoin. What do you think? Do you agree with Mike? Let us know your thoughts in the comment box.