Central banks have created a bubble in the stock market, which will come down "very, very hard" when it finally prices in a series of Federal Reserve rate hikes, Black Swan investor Mark Spitznagel said Tuesday.
While the collapse of the bubble isn't a Black Swan event in the sense that it is not an unforeseen or unpredictable event, Spitznagel said he would still call it one because the market is pricing it as a Black Swan.
The Fed's policymaking committee meets next week and could possibly raise interest rates. However, Spitznagel believes the market isn't pricing in a rate hike because there is collective psychology that the Fed can keep things going and is in control.
Spitznagel looks to profit during so-called Black Swan events. His bets have paid off handsomely. Last August, his firm made more than $1 billion in a single day after the Dow Jones Industrial Average collapsed more than 1,000 points
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