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Mark Spitznagel, chief investment officer of Universa Investments, told Business Insider in 2024 that he thinks the “worst market crash since 1929” is coming. Now, he claims that the recent market correction is just the beginning.
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“I expect an 80% crash when this is over. I just don’t think this is it. This is a trap,” Spitznagel wrote to MarketWatch on April 3.
After Trump unveiled Liberation Day tariffs on most countries — with some exceeding 100% — major market indexes entered bear market territory. The CBOE Volatility Index, also known as Wall Street’s fear gauge, hit its highest level since the COVID-19 pandemic.
“This is another selloff to shake people out. This isn’t Armageddon. That time will come as the bubble bursts,” Spitznagel continued to MarketWatch. “This is a most contrarian view right now. Promise.”
During an interview with the Wall Street Journal, he noted the high levels of national debt and the Federal Reserve’s aggressive rate hikes as contributing factors towards the “greatest credit bubble in human history.”
“Credit bubbles end. They pop. There’s no way to stop them from popping,” he said, adding that the Fed has brought the economy to a place “where there’s no turning back.”
Spitznagel’s advice to everyday investors is to not chase the market but build a portfolio that can withstand the next market crash instead.
Preparing for a crash
Spitznagel’s advice to investors is unorthodox.
“Diversification is not the holy grail as it’s been touted by many people. That is a big lie actually.”
While a diversified portfolio is traditionally held as the best way to protect your fortune against a fluctuating market, if Spitznagel’s advice has you unsure, speaking with an experienced financial professional could help bring you clarity and peace of mind.
With Advisor.com — a modern wealth platform — you can connect with professionally vetted financial advisors in as little as three minutes and find the right match for you
When you answer a few questions about yourself, the platform will match you with professionally vetted advisors that fit your needs. Then you can choose your favorite and book a free consultation with no obligation to hire.
Gold
Gold has long been touted as a safe haven asset during market uncertainty.
Gold is regarded as a hedge against inflation for a simple reason: It can’t be printed out of thin air like fiat money.
Those looking to incorporate precious metals into their retirement strategy can benefit from modern investment solutions, like those offered by companies like American Hartford Gold.
American Hartford Gold is a leading precious metals dealer – allowing you to invest directly in gold or silver.
With secure storage, expert guidance, and customizable investment plans, American Hartford Gold helps investors diversify their portfolios while protecting against inflation. Gold IRAs provide a tangible safeguard for retirement savings, combining financial security with significant tax advantages, making them an appealing choice for long-term wealth preservation.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Real estate
If you’re searching for an investment that offers both stability and potential for tempting returns, commercial real estate might be the answer. Unlike the stock market, which can be highly volatile, commercial real estate can provide steady income streams with generally lower volatility and a low correlation to the S&P 500, according to Nareit data.
Platforms like First National Realty Partners (FNRP) make it easier than ever to get started in this sector with professionally-vetted deals. FNRP gives you access to necessity-based real estate — such as grocery stores or health care facilities. That means the properties are essential to the local community, often leased by national brands, and likely to remain desirable.
Once a deal is closed, FNRP’s team of experts manages the property, so you can focus on finding your next deal. While commercial real estate can provide stability, residential real estate also offers a strong opportunity for further portfolio diversification.
With real estate investments averaging 10% returns over the past two decades, it’s no wonder the market is attractive. However, high prices and mortgage rates have made it increasingly challenging for buyers — until now.
Instead of buying a property outright or taking on an expensive mortgage, there’s are crowdfunding platforms that take a different approach by allowing you to invest directly in in residential properties without the hefty price tag of buying and managing a property yourself.
New investing platforms are making it easier than ever to tap into the real estate market.
For accredited investors, Homeshares gives access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.
With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
With risk-adjusted internal returns ranging from 12% to 18%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.
If you’re not an accredited investor, crowdfunding platforms like Arrived allows you to enter the real estate market for as little as $100.
Arrived offers you access to shares of SEC-qualified investments in rental homes and vacation rentals, curated and vetted for their appreciation and income potential.
Backed by world-class investors like Jeff Bezos, Arrived makes it easy to fit these properties into your investment portfolio regardless of your income level. Their flexible investment amounts and simplified process allows accredited and non-accredited investors to take advantage of this inflation-hedging asset class without any extra work on your part.
Another alternative to the stormy stock market
Over the past 25 years, contemporary art has shown itself to be a unique opportunity to diversify your portfolio outside the stock market.
In fact, fine art has historically outperformed the S&P 500, with contemporary art achieving an annual return of 11.5% from 1995 to 2023, compared to the S&P 500’s 9.6% during the same period.
Now, retail and accredited investors can easily invest in blue-chip art with Masterworks. Masterworks’ team scours the art market for the best deals, buys them at a discount, and offers shares to members. The Masterworks community of more than you 60,000 investors has access to exclusive shares in modern art by the likes of Picasso, Banksy and Jean-Michel Basquiat.
Sign up now to get VIP access and skip the waitlist and start building your portfolio outside the volatile stock market.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
