Market broadening is very healthy, says Richard Bernstein Advisors CEO Richard Bernstein
Watch on YouTube ↗  |  February 06, 2026 at 21:09 UTC  |  5:57  |  CNBC
Speakers
Richard Bernstein — CEO and Chief Investment Officer at Richard Bernstein Advisors

Summary

  • The US economy is exceptionally strong, with nominal GDP exceeding 8% last quarter—a level not seen (excluding post-pandemic anomalies) since 2006.
  • The "Mag-7" trade is overcrowded and expensive; investors can find similar growth rates (20%+) at half the valuation (20x earnings vs. 40x) by looking outside the US.
  • A potential hawkish Fed (specifically referencing Kevin Warsh) could drain liquidity, posing a significant risk to speculative assets like Crypto and Big Tech.
Trade Ideas
Ticker Direction Speaker Thesis Time
NON-US EQUITIES
LONG Richard Bernstein
CEO and Chief Investment Officer at Richard Bernstein Advisors 		Bernstein argues that while US earnings growth is leveling off, profit cycles outside the US are actually accelerating. Investors are currently overpaying for US growth. He posits a simple choice: If you can buy 20% growth for 40x earnings (in the US) or 20% growth for 20x earnings (International), the cheaper option is mathematically superior. Additionally, US investors are severely underweight in this asset class (holding <10% allocation in a sector that represents 35-40% of the global market). Non-US markets offer accelerating earnings cycles compared to the US plateau. A strengthening US Dollar could act as a headwind, though Bernstein believes the Fed cutting rates into strong GDP will likely weaken the dollar, boosting foreign returns. —
BTC /MAG-7
AVOID Richard Bernstein
CEO and Chief Investment Officer at Richard Bernstein Advisors 		Bernstein warns that the performance of the "Magnificent 7" and Crypto has been heavily driven by speculation and excess liquidity. Liquidity is the "lifeblood of speculation." If the Federal Reserve (potentially under a hawkish nominee like Warsh) tightens policy to fight inflation or stabilize the economy, they will "take the punchbowl away." Without excess liquidity, speculative assets with high valuations are the most vulnerable to a correction. High valuations (trading around 40x earnings) compared to the broader market. If liquidity remains abundant or the "AI boom" narrative continues to drive momentum regardless of rates. 5:30
COMMODITIES
LONG Richard Bernstein
CEO and Chief Investment Officer at Richard Bernstein Advisors 		Bernstein suggests commodities are a viable way to play a potential weakening of the US Dollar. If the Fed cuts rates while the economy remains hot (high nominal GDP), the dollar is likely to depreciate. Commodities are "hard assets" that historically appreciate when the currency they are priced in (the dollar) loses value. Historical correlation between falling dollar and rising hard asset prices. If the Fed becomes more hawkish (e.g., under a nominee like Warsh), the dollar could strengthen, hurting commodity prices. 5:12