"The market is an artificial fabrication," Universa's Mark Spitznagel warns in this brief but revealing interview, adding that "to think this can persist is simply naive." Talking to Maria B on FOX, Spitznagel thinks the market could be cut in half if the Fed stepped away now and points out the fallacy of a belief in any persistent tapering as the Fed will step right back if the market goes down. The gap between the market's "alternate reality" and actual reality is something that simply cannot persist and explains now is the time to be out, to prepare for when the market reprices (as opposed to suggesting people short the market) which is exactly what traders are not doing - as it would be irrational to think longer-term, "if they don't make their next week, month, quarter; they won't be around."
"Asset markets now are totally an illusion... they are pricing in an alternative reality that is so different what is going on"
"The reason for this is the Fed - the modern day Victor Frankenstein - who have created this thing that otherwise wouldn't live"
"We are led to believe there is this vigor out there, whereas in reality, if the Fed pulled out, the market would be cut in half"
"Japan is a crazy science experiment... it's a scary scary place [to invest]"
This brief clip covers a lot of ground but is well worth the price of admission as Spitznagel explains why the Fed is making the short-termist perspective of everyone from traders to corporate managers far greater...