Mark Spitznagel, founder of Universa Investments, warned the current US share market showed parallels to the 1929 crash era, signaling a looming economic meltdown, the Wall Street Journal reported.
He projected the S&P 500 could surge to 8,000 points on rate cuts - a 20 percent gain from current levels.
But he cautioned that the bullish market reversal would be even more severe than the 1929 Wall Street crash.
His hedge fund won on the collapse of Lehman Brothers in 2008 and gained during the 2015 “Flash Crash.”
In April, this hedge fund manager estimated an 80 percent market collapse, warning that the current market is a trap.
Spitznagel also expressed concern back in 2024, saying the market was nearing the biggest stock bubble in history.
In 1929, stock prices surged amid widespread optimism that the boom would last at that time.
However, the market collapsed in a single day, with the Dow plunging 13 percent and losing nearly half its value within two weeks, triggering the Great Depression. The index ultimately took 25 years to recover to its pre-crash peak.
