NATIONAL NEWS – “Black Swan” investor Mark Spitznagel predicts ‘euphoric high’ ahead and 80% market crash

Laila Kirkpatrick, Staff Writer

The stock market crashed last month on recession fears, but has since soared to fresh record highs as the Federal Reserve began cutting rates and China unveiled stimulus measures. Mark Spitznagel, the “Black Swan” investor and co-founder and chief investment officer of the hedge fund Universa Investments, warns that the market is unfolding as they predicted. He previously said that the markets would rally as the Fed eases in the Goldilocks phase. However, he has also warned of an incoming recession and that rate cuts are also the opening signal for big reversals down the line.

He also cautioned that in the current environment, this is an indicator that the biggest market bubble in history will soon pop and will prompt the Fed to “do something heroic. The would doom the economy to stagflation, he said. In an interview with Bloomberg TV, Spitznagel said the market will continue to see “pure euphoria in the short term, but will exit the Goldilocks zone toward the end of the year.