Mark Spitznagel, who is a bearish investor, has now predicted that stock prices may soon lose nearly half their value in an upcoming sell-off, that could end up putting the stock market in a major crisis. Moreover, he is also of the opinion that a recession could become a reality by the end of the year.
A US recession could happen by the end of the year, if the government's $34 trillion debt triggers it. Universa Investments has reportedly made billions from past stock market crisis, and this hedge fund is led by Spitznagel himself, which is the clear indicator that he is quite understanding about the future situation of the stock market. If stocks lose half their value as being predicted, the US stock market may see a record crash in coming days.
Is the US economy in danger?
Spitznagel is of the opinion that the bubble and the impact of its burst, would make it even tough for the US economy to witness a turnaround, as the $34 trillion debt may make it even more difficult for the Federal Reserve to turn the economy around within due time. Therefore, there are peak chances of a major recession by the end of the year in case this situation persists.
Stock market situation like a 'time bomb' now
Spitznagel has termed the situation of the stock market to be a ticking time-bomb, and the US markets could be heading to something really bad ahead. However, it must be noted that the market mogul has been raising alarms about a stock market crash since 2023, but it has not happened as of yet but things could become a reality in the future.
FAQs
Is Mark Spitznagel expecting a US stock market crash?
Veteran market analyst Mark Spitznagel is anticipating global stock market crash in coming times, based on the record peaks they have attained over the past two years.
Is the US economy under recession?
The US economy is currently not under recession but there are possibilities that it may arrive by 2025, according to market analysts.
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