DoubleLine’s Jeffrey Sherman and Samuel Lau welcome Richard Bernstein, CEO and chief investment officer of Richard Bernstein Advisors, to “The Sherman Show,” recorded on Feb. 22, 2021. The discussion kicks off with a reference to Mr. Bernstein’s 2001 book, “Navigate the Noise: Investing in the New Age of Media and Hype,” in which he writes about the tech bubble and how investors were being guided by secular stories and not fundamentals. “Buying a green pepper on the internet was technology, but building a fighter plane was not,” he recalls of some investors’ mind-set at that time. Mr. Bernstein sees that hype dynamic operating today at higher levels to the benefit of 30% of the equities market while opportunities in the other 70% are ignored. Among other topics, Messrs. Sherman and Lau get Mr. Bernstein’s thoughts on the difference between the stock market and a horse race: “It’s not like you’re betting on a horse, it’s like you’re buying a horse”; bitcoin: “It’s kind of loony”; and SPACs: “People have enough trouble understanding companies that do have fundamentals. I don’t quite understand why people would buy stocks of companies that have nothing. … Call me crazy on that one.”
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