Posted 3/13/2024, 8:00:00 AM
Spitznagel Forecasts 1929-Style Crash After Rally, Urges resilience Over Chasing Returns
- Mark Spitznagel expects a stock market rally to be followed by a historic crash, the worst since 1929, due to a massive credit bubble bursting
- He believes investors are currently euphoric and wrongly positioned, chasing returns out of a fear of missing out
- The market will zig-zag to catch investors on the wrong side, with many having sold at recent lows and poised to buy at new highs
- Spitznagel recommends investors avoid chasing or timing the market, and instead build resilient portfolios positioned to withstand 50% declines
- His advice is not to be "the sucker" selling in a crash or buying in a euphoric rally in order to survive the next couple years