- Brace for a recession and stock market crash akin to 1929, Universa Investments warned in a client note.
- The hedge fund is advised by author and market expert Nassim Taleb.
- The fund has long-predicted a financial crash, and warned that rising debt levels posed a “timebomb”.
Get ready for a “tinderbox timebomb” that will be even worse than the 1929 stock market crash, the manager of the “The Black Swan” hedge fund warned this week.
Universa Investments is advised by “The Black Swan” author Nassim Taleb, who called the financial crash that spurred the 2008 recession. In a recent letter to its investors, the fund warned the economy was headed for another financial collapse that could mirror the market crash leading to the Great Depression.
“It is objectively the greatest tinderbox-timebomb in financial history – greater than the late 1920s, and likely with similar market consequences,” Universa’s chief investment officer Mark Spitznagel said in the letter seen by Bloomberg on Tuesday.
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