Mark Spitznagel forecasts a final rally to 8,000 for the S&P 500, warning that the index faces an eventual 80% crash driven by unsustainable monetary policy.
Universa Investments founder Mark Spitznagel predicts the S&P 500 will reach 8,000 in a final euphoric rally before suffering an 80% collapse. Spitznagel, known for his disaster-hedging strategies, attributes the potential bubble to years of low interest rates and expects the Federal Reserve to eventually intervene with massive quantitative easing.
Mark Spitznagel is the founder of Universa Investments, a firm that specializes in 'black swan' protection. His strategy functions like disaster insurance, using options to hedge against severe market crashes.
He argues that years of near-zero interest rates created a bubble that will eventually break under the pressure of higher borrowing costs, forcing the Federal Reserve to restart quantitative easing.