---
title: "Focus on \"Black Swan\" risk hedge fund founder: S&P 500 Index will crash only after rising above 8,000 points"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/258608034.md"
description: "Mark Spitznagel, the founder of the tail risk-focused hedge fund Universa Investments, stated in an interview with Reuters that the S&P 500 index could rise by 20% due to market exuberance, reaching over 8,000 points, and then face risks similar to the 1929 crash. He predicts that the stock market will decline by 80%, but this decline will only occur after experiencing a massive rally. The fund manages $20 billion in assets and focuses on hedging against \"black swan\" events"
datetime: "2025-09-24T01:05:41.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/258608034.md)
  - [en](https://longbridge.com/en/news/258608034.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/258608034.md)
---

# Focus on "Black Swan" risk hedge fund founder: S&P 500 Index will crash only after rising above 8,000 points

Mark Spitznagel, Chief Investment Officer and founder of the tail risk-focused hedge fund Universa Investments, stated in an interview with Reuters that market exuberance could drive U.S. stocks up another 20%, pushing the S&P 500 index above 8,000 points, after which a historic collapse comparable to that of 1929 would occur, as the U.S. economy is expected to collapse under the pressure of still high borrowing costs.

Spitznagel admitted that he does indeed expect the stock market to drop 80%, but this would only happen after a massive, exuberant, and historic blowout rally. He believes that U.S. stocks are currently in the middle stage of this rally, rather than at its end.

The hedge fund manages $20 billion in assets and focuses on protecting against "black swan" shocks, using investment tools including credit default swaps, stock options, and other financial derivatives that appreciate in value during extreme market dislocations

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