(Bloomberg) — Even after a correction in tech stocks and surging yields on U.S. government bonds, investors still don’t understand the risks they’re taking in equity and debt markets, according to Mark Spitznagel, manager of the best-known fund protecting against so-called black swan events.
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“There’s a profound lack of appreciation for how dangerous the market is and how embedded all of this liquidity is in the financial system,” Spitznagel, the founder and chief investment officer at Miami-based Universa Investments, said in an interview Tuesday on Bloomberg Television.
Like others such as GMO’s Jeremy Grantham, Spitznagel says asset prices have been grossly inflated by years of rock-bottom interest rates and quantitative easing. Where he differs is in his approach to an impending crash.
Spitznagel said he doesn’t believe in trying to time the…
