Stocks and bitcoin are massive bubbles, long-time bear David Rosenberg warns

Stocks and bitcoin are massive bubbles, long-time bear David Rosenberg warns

Long-time market bear David Rosenberg is warning investors the stock market and bitcoin are massive bubbles.The economist and strategist cites crowded trades amid a struggling economic backdrop for his concerns."Based on our [stock market] valuation work, we are anywhere from 20% to 30% overvalued based on a whole bunch of different metrics," the Rosenberg Research president told CNBC's "Trading Nation" last week.Rosenberg, who served as Merrill Lynch's top North American economist from 2002 to 2009, is known for his pessimism over the past several years. In 2019, he told investors a recession was virtually unavoidable.He toned down his market negativity last Spring on "Trading Nation" — asserting he didn't hate stocks because the Federal Reserve's unprecedented support could last for years. The key right now, according to Rosenberg, is to be vigilant.'Probably not going to burst any time soon'"What's holding the boot together is basically zero interest rates. As long as rates remain where they are, unless we have a real dramatic pullback in economic activity, this bubble that we're in is probably not going to burst any time soon," he said. "We have to understand though we are investing in a bubble."The major indexes are starting 2021 in record