Investor Rich Bernstein warns that market may be in the biggest bubble of his career

Renown investor Rich Bernstein warns investors of an impending market bubble which he says could be the biggest of bubble of his career.

The hall of famer investor is waving a red flag on a range of long-duration assets including big tech and bitcoin. He describes it as what could be the "biggest bubble of my career" during an interview with CNBC's Trading Nation. He also implies that the warning is bigger than the dot-com and housing bubbles.

"The Fed has so distorted the long-end of the curve that's we are seeing a very natural reaction among long-duration assets which is then taking a life of its own," said Bernstein, CEO and CIO of Richard Bernstein Advisors. "Anybody who's out there in these long-duration assets has to be firmly convinced that long-term interest rates are not going to go up because that's the kryptonite for this bubble."

Bernstein believes the drop is going to be worse than June, when he warned that bitcoin was going to be a bubble. Although it has rallied since the, it's still off about 20% in the last three months.

"When you get into a bubble, people become very myopic. They look only at a very small universe of investments," Bernstein said. "People always say to me 'Okay. Well, you're so smart. When is the bubble going to burst.' And, the answer is nobody knows."

Bernstein recommends diversifying for groups that have pricing power in an inflation environment, pointing towards commodities, materials, energy, and the likes. He added that energy has been in a major bull market in the last six to twelve months and everyone is saying it is unsustainable, while bitcoin has been in a major bear market that everybody is waiting to come back.

The investor is not predicting that there will be an overall market meltdown despite the bubble warning. Instead, he views the market as a seesaw, a balance between long-duration assets and a bubble.

"We're balancing between these long-duration assets that are very overvalued and a bubble versus the rest of the world," Bernstein said. "Unless liquidity dries up very rapidly, which seems unlikely, the probability of a major bear market is probably much lower than people think."

About Richard Bernstein Advisors LLC

Richard Bernstein Advisors LLC is an independent adviser that is focused on longer-term investment strategies that includes top-down, macroeconomic analysis and quantitatively-driven portfolio construction. The company is passionate about becoming the leading provider of innovative investment solutions. Its competitive strategy is its research-driven macro style of investing.