The last two weeks of the stock market have been a roller coaster for investors due to the ongoing trade war. With the uncertainty of how the White House tariffs will impact the economy in the long run, one finance expert is telling consumers to brace for a rocky ride.
Mark Spitznagel, founder, owner, and chief investment officer of Universa Investments, a hedge fund management firm based in Miami, FL, had a warning for Americans this week — the worst is yet to come.
“I expect an 80% crash when this is over. I just don’t think this is it. This is a trap,” he told MarketWatch in a statement on April 7. “This is another selloff to shake people out. This isn’t Armageddon. That time will come as the bubble bursts. This is a most contrarian view right now. Promise.”
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Spitznagel doesn’t have a prediction of when this will happen, but he believes that a crash similar to the one in 1929 is ahead. While this might seem like a negative approach — he does call himself a “professional doomer” — the stock market expert has been predicting this situation since 2023.
“We are in the greatest credit bubble in human history. And that’s not my opinion, that’s just numbers,” he told Fortune in August 2023. “There is no question about the fact that we are living in an age of leverage, an age of credit, and it will have its consequences.”
Spitznagel believes in the long-term success of the U.S. and recommends that people don’t get caught in the storm of selling when the market is at its lowest point. Still, the warning is out there — there’s still more volatility to come.
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