Mark Spitznagel, CIO, who founded Universa Investments, which manages funds to prepare for Blackswan-like events, said that the financial system has “the worst credit bubble in human history.” Warn that it is imminent.
“If this credit bubble bursts, the market will be hit by a catastrophe that no one has ever heard of. Let’s hope this doesn’t happen,” Spitznagel said in a telephone interview yesterday. “We have come to a difficult position ourselves,” he said.
Mark Spitznagel
Photographer: Misha Friedman/Bloomberg
Spitznagel says he is not an “apocalyptic pessimist.” He has argued that the central bank’s zero interest rate policy or negative interest rate policy has been argued that these policies have raised asset values and encouraged excessive borrowing. Current monetary authorities are fighting monetary tightening globally once morest rising inflation.
President Goldman also warns, “unprecedented” impact on the economy-tuned to Mr. Dimon
Spitznagel said he betrayed investors this year and made the pain worse for traditional quality escapes such as US Treasuries and gold. His 2021 book, Safe Haven, argues that neither US Treasuries nor gold are consistent with risk mitigation.
Founded in 2007, Universa is advised by Nassim Nicholas Taleb, who predicted the 2008 financial crisis in his best-selling book, Black Swan. The company is a pure hedge fund that specializes in minimizing risk and claims to protect its capital in the event of a peculiar market plunge. According to a letter obtained by Bloomberg, it told its clients that it had a 3612% return on options trading in March 2020.
Original title:Black Swan Investor Watching for ‘Greatest Credit Bubble’ to Pop(excerpt)
