The founder of a well-known "Black Swan Fund" warns: The S&P 500 may plummet after reaching 8,000 points.

PANews reported on February 18 that Mark Spitznagel, founder and chief investment officer of the "Black Swan Fund" Universa Investments, said that the multi-year upward trend in US stocks is far from over—at least for now.

In a recent letter to investors, Spitznagel wrote that the market will continue to operate in the "Goldilocks range" over the next year—with declining inflation and interest rates, a slowing but not excessive economic slowdown, and a shift towards exuberance in market sentiment—leading to a sustained stock market rally that ends in a surge. However, he added that "the biggest bubble in human history" is now in its final stages.

Spitznagel's hedge fund, which has been operating for nearly two decades and focuses on tail risk hedging—protecting investors' portfolios from the next major crash—stated that the stock market will continue to rise as long as the economy remains resilient—a view he has maintained since late 2022. In an interview, he stated that market euphoria could push the S&P 500 to 8,000 points or even higher—followed by a sharp reversal. The index closed at 6,843.22 points on Tuesday.