In a Bloomberg TV interview, Milton Berg, founder and CEO of MB Advisors, says, “We’re at the cusp of a 30-year bear market in stocks and bonds.”

Click here to play.

Berg’s view on a 30-year bear market is on a “real inflation-adjusted basis, not a nominal basis”.

This is the “most over-valued equity market in history, worldwide” …. not even a Mario Draghi “whatever it takes” action will help.

“It’s all one big worldwide bubble.”

I especially like Berg’s admission that he does not know how this ends.

“Either deflation is going to accelerate, which is most likely, or they [central banks] will turn to real inflation, real printing, rather than just credit inflation. Either way it’s disastrous.”

That has been precisely my view for some time.

I, too, expect another round of credit-based deflation but I am willing to change my mind if something different happens.

Berg finishes with a bang: “The whole idea you buy stocks and hold them for 30 years was never correct… The typical investor should be out of stocks and out of bonds and wait for a crisis, and buy during a crisis.”

Not sure when the bond bubble bursts. Stocks are on the cusp now.

But as I have stated, there may not be a crash that many bears now expect.

My favored scenario is a series of five to fifteen percent declines over a number of years, with smaller and less frequent rallies, where every rally is a trap.

Such a slow bleed would be far more painful to pension plans counting on eight percent annualized returns.

This is one of the best Bloomberg interviews I have seen in a long time, but I am a bit biased. I would have said nearly the same thing.