A market crash guru is sounding the alarm over Trump’s economy.
Mark Spitznagel, a hedge fund manager dubbed the “crash guy” on Wall Street, is predicting the biggest fallout America’s seen since the Wall Street Crash in 1929, The Wall Street Journal reported on Monday.
“I’m the crash guy—I remain the crash guy,” Spitznagel bullishly said.
During an interview with the outlet, the investor drew similarities between today’s market and the early part of 1929, when stocks added significantly to their Roaring ’20s gains.
The market crash of 1929 followed a period of abundance on the New York Stock exchange that many believed would be never ending.
Share prices skyrocketed to new heights and the Dow Jones Industrial Average increased six-fold from 63 in August 1921 to 381 in September 1929, according to the official Federal Reserve website.
The epic boom ended in a catastrophic collapse, however, after the Dow declined nearly 13 percent in one day. The market dropped nearly 12 percent the following day and in two weeks time, the Dow had lost almost half of its value—triggering the Great Depression.
The Dow did not return to its pre-crash heights until November 1954.
While Spitznagel’s claim is a bold one, his record adds some credibility to his claims—especially because he stands to profit off of a collapse.
His hedge fund, Universa Investments, skyrocketed in earnings when Lehman Brothers collapsed in 2008 and when Covid-19 sparked a market meltdown in 2020. Spitznagel also earned $1 billion in a single day for his clients during 2015’s “Flash Crash.”
In July 2024, he sounded the alarm over something “really, really bad” coming but with gains in stocks first, the Journal reported. Since then, the S&P 500 has gained 23 percent.
A main driver behind Spitznagel’s new and gloomy prediction is “repeated federal rescues of markets and the economy,” he said, comparing it to quickly extinguishing forest fires only to have too much dry tinder accumulate.
In today’s near-record stock valuations, the eventual “firebomb” could burn even brighter, Spitznagel told the outlet.
“The markets are perverse,” he said. “They exist to screw people.”
The Wall Street legend isn’t the only one sounding the alarm over Trump’s economy; behind closed doors, many top business leaders are privately fuming over his economic agenda.
Jeffrey Sonnenfeld, a Yale business professor known as the “CEO whisperer,” told CNN that 80 percent of his CEO focus group participants—most of whom are Republicans—are disappointed with the economy’s performance under President Trump.
The Daily Beast has reached out to the White House for comment.
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