Universa’s Spitznagel Sees S&P Soaring to 8,000 Before Bust

For the year ahead, markets will remain in “the Goldilocks zone — falling inflation and rates, a slowing economy but not too slow, and sentiment flipping toward euphoria — accompanied by a continued ramp and final blow-off in equities,” Spitznagel wrote in a recent letter to investors. The worry is: if the Federal Reserve holds rates at current levels for an extended period, businesses will start to struggle to raise capital. “The Fed is on hold, the market will anticipate more easing to come as the economy gradually deteriorates,” he said.