Albert Edwards: Bitcoin is a bubble

That bitcoin is in a bubble is beyond doubt, reckons investment guru Albert Edwards. The trouble is, it's distracting us from another bubble.

Bitcoin is a bubble no arguments about that, says Societe Generale's famously bearish global strategist, Albert Edwards. The trouble is, the cryptocurrency is also distracting us from a far more important bubble that in US stocks. Indeed, Edwards notes that "amid all the focus on the parabolic rise of bitcoin it has gone almost unnoticed that, following its rapid ascent", the S&P 500 index is more overbought than at any time since 1995. Meanwhile, professional advisers are more bullish on the market than at any time "since (just before) the 1987 crash".

The overvaluation could, of course, continue "the market can remain expensive and irrational far longer than most investors can stay solvent, or indeed longer than most investment managers can retain their jobs in the face of underperformance".

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.