{"id":20670,"date":"2016-05-16T12:10:57","date_gmt":"2016-05-16T17:10:57","guid":{"rendered":"http:\/\/olduvai.ca\/?p=20670"},"modified":"2016-05-16T12:10:57","modified_gmt":"2016-05-16T17:10:57","slug":"markets-have-no-purpose-any-more-mark-spitznagel-warns-biggest-collapse-in-history-is-inevitable","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=20670","title":{"rendered":"“Markets Have No Purpose Any More” Mark Spitznagel Warns “Biggest Collapse In History” Is Inevitable"},"content":{"rendered":"

“Markets Have No Purpose Any More” Mark Spitznagel Warns “Biggest Collapse In History” Is Inevitable<\/a><\/h3>\n
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After making over $1 billion in one day last August<\/a>, and warning that “the markets are overvalued to the tune of 50%,”\u00a0<\/strong>Mark Spitznagel knows a thing or two about managing tail risk.<\/p>\n

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The outspoken practitioner of Austrian economic philosophy tells\u00a0The FT,<\/a>\u00a0“Markets don’t have a purpose any more – they just reflect whatever central planners want them to,” confirming his fund-management partner, Nassim Taleb’s perspective that “being protected from fragility in the financial system is a necessity rather than an option.”<\/p>\n

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“This is the greatest monetary experiment in history. Why wouldn\u2019t it lead to the biggest collapse? My strategy doesn\u2019t require that I\u2019m right about the likelihood of that scenario. Logic dictates to me that it\u2019s inevitable.”<\/strong><\/em><\/div>\n<\/blockquote>\n

While\u00a0some money managers are critical of a strategy that \u201csells fear,\u201d<\/strong>\u00a0The FT reports<\/a>\u00a0there are others who share Mr Spitznagel\u2019s views that another reckoning is imminent.<\/p>\n

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Among those who share his worldview is former US presidential candidate, Senator Rand Paul, and his father Ron Paul.<\/div>\n

The elder Paul wrote the introduction to Mr Spitznagel\u2019s 2013 book, The Dao of Capital. \u201cAs one of the leading voices in the country on economic policy, Mark has been a key friend and ally, and I\u2019m thankful for his always-ready advice,\u201d Senator Paul told the FT.\u00a0But most investors will be praying he is wrong.<\/strong><\/p><\/blockquote>\n

Universa started in January 2007 after its success during the financial crisis, when it reportedly gained about 100 per cent.\u00a0The firm now protects about $6bn of investor money<\/strong>, backed by about $200m-$300m of capital (the firm declined to say exactly how much because of regulatory issues). Fees are paid on the nominal amount insured against calamity, rather than the capital invested.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

“Markets Have No Purpose Any More” Mark Spitznagel Warns “Biggest Collapse In History” Is Inevitable After making over $1 billion in one day last August, and warning that “the markets are overvalued to the tune of 50%,”\u00a0Mark Spitznagel knows a thing or two about managing tail risk. The outspoken practitioner of Austrian economic philosophy tells\u00a0The […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2125,150,8262,7812,11633,500,7248,2305,690,692,2443,8285,4318],"class_list":["post-20670","post","type-post","status-publish","format-standard","hentry","category-economics","tag-austrian-economics","tag-collapse","tag-financial-times","tag-ft","tag-mark-spitznagel","tag-market-collapse","tag-nassim-taleb","tag-rand-paul","tag-risk","tag-ron-paul","tag-stock-markets","tag-tail-risk","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20670"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20670\/revisions"}],"predecessor-version":[{"id":20671,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20670\/revisions\/20671"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}