The ‘Black Swan’ fund manager predicts that the U.S. stock market may experience a repeat of the 1929 Great Crash.

Gelonghui, September 23rd | According to The Wall Street Journal, Mark Spitznagel, founder of the “black swan fund” Universa Investments, believes that the current U.S. stock market is similar to the period just before the Great Crash of 1929. He is currently concerned about the market outlook, seeing similarities between today’s stock market and the Wall Street crash of 1929. He feels that the present situation resembles early 1929, when the so-called “Roaring Twenties” mega bull market still surged before its collapse. He believes that the reversal of the current bull market could be the most severe since 1929, due to repeated federal government bailouts of the market and economy. He compares this to piling up too much dry, flammable material while trying to quickly extinguish a forest fire. With stock valuations already nearing historical highs, the eventual “burn” could be more intense. However, before that happens, he thinks factors such as Federal Reserve interest rate cuts will create ideal conditions for further stock market gains, with the S&P 500 index reaching 8,000 points relatively quickly. This would represent a 20% increase from current levels. His hedge fund, Universa Investments, reaped massive profits during the market crashes triggered by the collapse of Lehman Brothers and the COVID-19 pandemic. He also predicted in July 2024 that the stock market would experience “something very, very bad,” but instead, it first saw a final burst of exuberance. The S&P 500 index has risen 23% since then.