Mark Spitznagel, founder and chief investment officer of Universa Investments, warned in commentary to MarketWatch that a historic collapse may be looming.
“I expect an 80% crash when this is over. I just don’t think this is it. This is a trap,” he said on April 7, days before Trump announced a 90-day pause on his plan to hike tariffs on most countries.
The stock market recovered some losses on that announcement, but it’s still a chilling forecast from Spitznagel. The S&P 500 is down roughly 7% year to date — enough to shake investor confidence — yet Spitznagel suggests that could be just the beginning of a much steeper fall.
And his warnings don’t stop there.
“This is another selloff to shake people out. This isn’t Armageddon. That time will come as the bubble bursts,” he added.
Spitznagel is no stranger to market mayhem. He gained notoriety during the 2020 COVID crash, when Universa’s flagship “Black Swan Protection Protocol” fund posted an eye-popping 4,144% return in the first quarter of that year.
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