'Black Swan' investor Mark Spitznagel says the crash of a lifetime is coming after one more 'euphoric rally'
Universa Investments' Mark Spitznagel told BI that he expects one more "euphoric rally" followed by a "bigger crash than we've seen in our lifetime."
Investor Mark Spitznagel, head of Universa Investments, foresees a future crash unlike any other after a period of euphoric stock market rallies. The Universa Investments chief predicts that the AI boom will reach unforeseen heights before collapsing. Spitznagel, founder and chief of the Black Swan fund, shared his outlook on the stock market and his investing style in a recent interview.
Universa's tail-hedging strategy has allowed Spitznagel to be extremely bullish for the past four years, despite the hedge fund being one of the most bearish vehicles available. He acknowledged signs of excessive leverage and hubristic, humongous bets, but did not see signs of an imminent stock-market crash. Spitznagel warned that the economy is rolling over as the aftereffects of recent interest-rate hikes have yet to fully materialize.
He believes that Michael Burry, the investor behind The Big Short, is correct to worry about AI hyperscalers' overinvestment in microchips and data centers, circular financing deals, and hidden liabilities, but that Burry will misjudge the timing. Spitznagel is expected to be the most bearish voice in the coming months, predicting a significant crash following one final, risk-on rally.
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