Rich Bernstein Negative on Tech as Rates Rise

By on March 18, 2021

Rich BernsteinRich Bernstein, CEO and CIO of Richard Bernstein Advisors, warned that high-flying tech stocks could face severe headwinds for years as interest rates rise.

Bernstein said in a rising rate environment investors should avoid long duration bonds, as well as long duration equites – those with high PE ratios.

Comparing today’s backdrop to the environment in 1999-2000, Bernstein forecasts a dismal future for today’s overvalued market darlings, including negative returns for up to a decade.

However, Bernstein is positive on cyclical stocks including commodities and energy stocks. He mentioned there were few ETFs dedicated to the cyclical commodities sectors which can be considered a contrary signal.

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