Mark Spitznagel points to easy-money central banks
by Shawn Langlois
If you listened to Mark Spitznagel, the founder of Universa Investments, back in March, you probably made a nice little profit — or at least avoided some of those nasty losses — when the coronavirus outbreak blew up the long-running bull market.
“When the market crashes, I want to make a whole lot and when the market doesn’t crash, I want to lose a teeny, teeny amount,” he said. “I want that asymmetry… that convexity.”
Spitznagel, a former trader, is a protégé of Nassim Nicholas Taleb, the author of the 2007 bestseller “The Black Swan,” a metaphor used to describe unpredictable, highly disruptive events — the kind that could blow up markets. The coronavirus clearly qualifies.