Hedge Fund Manager Predicts 'Huge' Stock Market Crash Amid Continuing Credit Bubble: 'There's No Way To Stop Them From Popping'

Renowned hedge fund manager, Mark Spitznagel, warns of an impending stock market crash, attributing it to the growing credit bubble

In an interview with NY Magazine “Intelligencer,” Spitznagel explains that the market’s current state is a result of constant monetary intervention by central banks since the 2008 financial crisis. He argues that these interventions have led to a distorted economy and manipulated markets.

Spitznagel views the current economic situation as the most dangerous in history, not due to global conflicts, but due to the actions of the Federal Reserve. He believes that the current credit bubble is the largest in human history and is skeptical about how and when it will end.

“Credit bubbles end. They pop. There's no way to stop them from popping,” he said.

“I think there will be a huge crash coming. I don't know when — it doesn't seem to be right now. I think right now, the Fed's on pause mode, and that usually comes with a little bit of a Goldilocks zone. But I absolutely think rates are going to be very, very low again because the Fed's gonna have to make them very, very low again to stave off what's coming.”

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Despite this, he does not advise against long-term investments in the market. He suggests that risk assets such as the S&P 500 will be higher twenty years from now.

Spitznagel stresses the importance of being prepared for a potential 50% market decline. He advises investors to consider what positions they can hold if such a scenario were to happen and to protect themselves from their own reactions in both scary and euphoric market environments.

Spitznagel, leader of the hedge fund, Universa Investments, is known for his pessimistic outlook. His fund offers a form of insurance for investors’ stocks, designed to soar in value during a market crash.

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