Stocks appear to be in the "Goldilocks zone" as they hit record highs and traders are confident of a soft economic landing, according to Bloomberg. But investors should be wary of second-order effects, such as an economic slowdown, which could cause markets to suddenly crash even if the Federal Reserve cuts interest rates.

Spitznagel expects global markets to take a “major hit” by the end of the year, likely driven by an economic slowdown. He said the countdown to a black swan event begins when the yield curve inverts and then reverses again.

He also noted that gold and cryptocurrencies will fall along with risk assets, with bonds likely to become a safe haven. He expects volatility to surge in the coming months.