Mark Spitznagel predicts 80% stock market crash, calls current plunge a ‘trap’

According to renowned investor Mark Spitznagel, yesterday's stock market drop might be a sign of something bigger coming up. According to a MarketWatch story, he called the plunge a “trap” and stated that he expects a “80% crash when this is over." He went on, "I just don't think this is it."

Spitznagel founded the hedge fund Universa Investments and serves as its chief investment officer. Its approach to investing is taking positions that will profit from infrequent, erratic, but significant events. Funds such as Universa Investments are referred regarded as "Black Swan" funds, a word that describes unforeseen circumstances.

Earlier in 2024, he cautioned investors not to be taken off guard when the stock market declines and become the "sucker" who sells when the market is down and purchases when it is up.