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Investors should be wary of coming Fed rate cuts, Black Swan investor Mark Spitznagel warned. That's because the Fed is only cutting rates in response to a weakening economy, Spitznagel told Reuters last week. The US could see a recession and major stock crash before rates head lower, he predicted. That's because the Fed is only likely to ease monetary policy when the economy is slammed with a recession and the market is flailing, according to famous "Black Swan" investor Mark Spitznagel. "There are lag effects when you reset interest rates like we had."
Persons: Black Swan, Mark Spitznagel, Spitznagel, , Swan, Nassim Taleb Organizations: Reuters, Service, Federal Reserve, Universa, Federal, National Association of Business Economics, Investor
The fund made headlines for returning 4,144% amid the 2020 stock market crash, an example of a so-called black-swan event. And when the market moves one way, we think that's going to happen forever." Spitznagel's main don'ts to mom-and-pop investors are; don't chase the market, don't time the market, don't place too much confidence in its current direction, and don't make decisions based on short-term Fed moves. Instead, build a portfolio that's positioned so that if the market goes down by 50%, you won't be squeezed. And if the market is up 50%, don't be the sucker that's going to buy up there", Spitznagel said.
Persons: Mark Spitznagel, Spitznagel, Ray Dalio, We're Organizations: Universa Investments, Business
The US is headed for a debt "death spiral" if politicians don't rein in spending, Nassim Taleb said. "The Black Swan" author said debt troubles will continue if Congress can't"A debt spiral is like a death spiral," Taleb said at an event on Monday. AdvertisementThe US is facing a "death spiral" as a result of its mounting debt and the inability of politicians to confront the issue, according to "The Black Swan" author Nassim Taleb. In fact, rising debt in the US is a "white swan," Taleb said, and is an event that poses an obvious risk to markets versus a "black swan" event, which can occur without much warning. "A debt spiral is like a death spiral," he added.
Persons: Nassim Taleb, Swan, Taleb, , Per, Goldman Sachs Organizations: Service, Per Bloomberg, Universa Investments, Fed, Investors Locations: West, Congress
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDiversifiers really don't give you a focus protection, says Universa's Ron LagnadoRon Lagnado, Universa Investments director of research, joins 'Squawk Box' to discuss the latest market trends, how investors can best position their portfolios, and more.
Persons: Ron Lagnado Ron Lagnado Organizations: Universa
A "Black Swan" investor says there's a huge debt bubble and the Fed's policies will end in disaster. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. I don't think that should be a controversial statement." "Treasuries are not a safe haven, they're very much a hopeful haven. I think that they're pretty cheap right now, frankly, so I don't want to trash them too much.
Persons: there's, Mark, Treasuries, Spitznagel, , Mark Spitznagel, it's, They've, It's, Peter Lynch, I'm Organizations: Service, Universa Investments, Yahoo Finance
"Black Swan" author Nassim Taleb is once again warning investors about potential risks in the stock market. Taleb warned about a bubble brewing in AI stocks and the lingering impact of high interest rates. From calling crypto a "tumor" to warnings about a brewing bubble in artificial intelligence stocks, Taleb had a lot to say about markets. It did exactly the opposite of its mission as an inflation hedge because it collapsed... it's not an inflation hedge... it's not good for real money laundering because it's very traceable. AI bubble"Because you don't know which one is the one that's going to win.
Persons: Nassim Taleb, Taleb, , It's, it's, Osborne Organizations: CNBC, Service, Universa Investments Locations: Osborne
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with 'The Black Swan' author Nassim Nicholas TalebNassim Nicholas Taleb, Universa Investments scientific advisor and author of ‘The Black Swan’, joins 'Squawk Box' to discuss the markets and economy, why a bubble is looming, the state of cryptocurrency, and more.
Persons: Swan, Nassim Nicholas Taleb Nassim Nicholas Taleb, Locations: cryptocurrency
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via Email'The Black Swan' author Nassim Nicholas Taleb on crypto: A cult coupled with a financial instrumentNassim Nicholas Taleb, Universa Investments scientific advisor and author of ‘The Black Swan’, joins 'Squawk Box' to discuss the markets and economy, why a bubble is looming, the state of cryptocurrency, and more.
Persons: Swan, Nassim Nicholas Taleb, Nicholas Taleb, Locations: cryptocurrency
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via Email'The Black Swan' author Nassim Nicholas Taleb on looming crisis: The risk is in front of usNassim Nicholas Taleb, Universa Investments scientific advisor and author of ‘The Black Swan’, joins 'Squawk Box' to discuss the markets and economy, why a bubble is looming, the state of cryptocurrency, and more.
Persons: Swan, Nassim Nicholas Taleb, Locations: cryptocurrency
Universa Investments, a "black swan" hedge fund specializing in market shocks, sensationalized this approach after it made headlines in the first quarter of 2020 for a 4,144% return when the stock market plunged. So what we do for investors is our fund serves as protection against that sort of exogenous event, that sort of crash," Sidial said. In short, it's a bet against the odds in exchange for lofty returns, or what's known as convex payouts. However, if there's a market crash, the volatility on the VIX generally outperforms more than any other underlying securities in the US equities market, he noted. For example,Cambria Tail Risk ETF (TAIL) was up 27% from mid-feb to mid-march 2020 during the stock market crash brought about by the pandemic.
Burry recently compared the S&P 500's rebound to its short-lived rally during the dot-com crash. The benchmark S&P 500 index gained 6.2% in January, while the tech-heavy Nasdaq Composite surged 11%, marking its best January performance since 2001. Burry has been pouring cold water on the stock rally this year. The implication was that the S&P 500's 17% rally since last October's low could also prove short-lived. GMO's Jeremy Grantham recently declared the S&P 500 could plummet 50% in a worst-case scenario, while Universa Investments's Mark Spitznagel diagnosed the "greatest tinderbox-timebomb in financial history."
Hello 10 Things on Wall Street readers! As you might know, for the last few years Insider has been highlighting some of the most talented young people on Wall Street. Take a look at all the photos from Insider's celebration of Wall Street's rising stars here. A decade after the private-equity giant helped launch Athene Holdings, more private money managers are moving into insurance as they hunt for higher yields, the Wall Street Journal reports. Adam Berry, head of US loan trading is leaving Wall Street to join the Philadelphia Eagles, according to Bloomberg.
Today, I'm breaking down what to know about the Fed's third jumbo rate hike, and how markets could look in its aftermath. In this March 21, 2018, file photo, Federal Reserve Chairman Jerome Powell speaks following the Federal Open Market Committee meeting in Washington. A third, outsized rate hike is an unprecedented move by the Federal Reserve. For this meeting in particular, billionaire David Rubenstein warned that a 100-basis-point hike this week would shock and depress markets and investors. What's on deck for markets after a third consecutive large rate hike?
How to Survive the Next Market Crash
  + stars: | 2022-09-19 | by ( Spencer Jakab | ) www.wsj.com   time to read: 1 min
Jerome Powell and the Federal Reserve might be in the process of driving the stock market over a cliff by tightening into a recession. That is one potential scenario envisioned by fund manager Mark Spitznagel , who actually thinks the Fed will blink soon on rate increases. He isn’t explicitly betting on either outcome, but would likely find himself in the headlines again if the more dire one comes true: The last time there was a contraction in the U.S. economy his firm, Universa Investments, earned an astounding 4,000% return in a matter of weeks. The time before that, during the financial crisis, he more than doubled clients’ money even as the value of stocks was cut in half. In between those two downturns, Universa made $1 billion in a single day during the “flash crash.”
But the crypto-heavy conference meant one hedge fund wasn't in attendance. Universa Investments, a black swan fund that specializes in purchasing protection against major market crashes, skipped out this year. The Miami-based hedge fund, which has $15.5 billion in assets under management, made headlines in the past after its flagship Black Swan Protection Protocol fund reportedly returned 4,144% amid the stock market crash of 2020. Many crypto investors may perceive these digital assets, bitcoin specifically, as a hedge against the devaluation of currencies. You need to have a clear thesis for why you're picking crypto assets over a tech stock, like Microsoft for example, he said.
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