‘No turning back’: This Wall Street bear is predicting the biggest market crash since 1929 — Here’s how to prepare your portfolio if he’s right
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We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.
One of Wall Street’s most bearish skeptics told Business Insider last month that he thinks the “worst market crash since 1929” is coming.
Mark Spitznagel, chief investment officer of Universa Investments, is known for being a “permabear” when it comes to the stock market outlook.
Spitznagel told Bloomberg in an earlier interview that we’re witnessing the “greatest credit bubble in human history.”
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“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 main advice to everyday investors is not to chase the market, but rather to build a portfolio that can withstand the impact if the market crashes.
If you share Spitznagel’s incredibly bearish view on the state of the U.S. economy, here’s how you can prepare your portfolio.
Preparing for a crash
In an interview with New York Magazine's Intelligencer last year,Spitznagel likened the Fed's “constant monetary intervention” to forest fire suppression.
He went on to say “when you suppress it enough, it gets to a point where you can no longer afford to have any fires burn because they would be too big and too intense.”
That’s where the U.S. economy is at, according to the hedge fund manager.
If Spitznagel’s dire market predictions come true, you really don’t want to have all of your eggs in one basket — because that basket could easily go up in flames.
Diversifying your portfolio with a mix of assets — including stocks, bonds, real estate, and other alternative assets — will help you spread your risk and secure your money.
Gold
Gold has long been touted as a safe haven asset during market uncertainty.
Amid persitent inflation, gold prices have reached new heights, now standing at around $2,338 per ounce.
Goldco, can help you open a Gold IRA to help preserve your retirement fund.
This tax-advantaged retirement account can help you stabilize your finances by allowing you to invest directly in physical precious metals rather than stocks and bonds.
Read more: 'Baby boomers bust': Robert Kiyosaki warns that older Americans will get crushed in the 'biggest bubble in history' — 3 shockproof assets for instant insurance now
Real estate
If you’re looking to get into the real estate game, platforms like First National Realty Partners(FNRP) let you take advantage of the sector with professionally-vetted commercial real estate deals.
FNRP gives you access to necessity-based real estate — such as grocery stores or health care facilities. That means the income-producing properties, often leased by national brands like Walmart and Kroger, and likely to remain in demand.
Once a deal is closed, FNRP’s team of experts manages the property, so you can focus on finding more deals you love.
Fundrise offers an opportunity to help grow your portfolio through their eREITS. Unlike traditional publicly-traded REITs, Fundrise eREITS are available exclusively through their platform.
Each eREIT is part of a distinct investment strategy and there are a range of real estate assets including residential and commercial properties or real estate loans to choose from. Low minimum investments make it easy to diversify your portfolio with income-generating real estate.
More stock market alternatives
If you’re looking to diversify your portfolio outside of real estate, consider an alternative asset like fine art. Masterworks is making this inflation-hedging asset — which has historically been reserved for the ultra wealthy — accessible through their platform.
With Masterworks, you can purchase shares of iconic works of art and benefit from their diversifying ability, without needing to shell out millions of dollars at an auction.
It can also pay to keep some cash on hand. Cash reserves in your portfolio could be the difference between you holding fast through market turmoil or you having to sell your investments at a loss.
To find the right balance of cash versus stocks and other assets, consider speaking with an experienced financial professional.
With Zoe Financial— 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 favourite and book a free consultation with no obligation to hire.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
