Billionaire Barry Diller says the market is being driven by 'great speculation,' and urges investors to save 'every nickel'

• Billionaire Barry Diller told CNBC on Tuesday the market is being driven by "great speculation," and investors should save "every nickel" they have.
• The media mogul and chairman of IAC also reflected on the fact that the economic crisis caused by the pandemic allowed IAC to make a "significant" $1 billion investment in MGM resorts.
• Diller said that each day from now until November is going to get "more and more concerning" as anticipation for the US election heightens.

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"I would stay home."

That's what billionaire Barry Diller told CNBC on Tuesday, in an attempt to urge investors to save "every nickel" they can and keep cash instead of diving into stocks.

"I think the market right now is a great speculation," the media mogul said, citing the uncertainty around the US presidential election as an increasing near-term concern.

"We've got the anvil of this election over our heads. Each day from now until November is going to get more and more concerning ... and more and more difficult," Diller added.

Read more: Wondering whether to go long on growth or value stocks? JP Morgan's take on EPS estimates could help answer the question.

While he said that now is the time to maintain cash positions, he also reflected on the fact that the economic crisis provided his media conglomerate, IAC, with a significant investment opportunity. In August IAC purchased a nearly $1 billion stake in MGM resorts.

"For bad reasons, we got the ability to invest in something like that," Diller said.

The billionaire also said that he believes a Biden win will cause markets to fall after the election on the expectations of tax hikes, but that he doesn't believe businesses will be affected in the long term by a Democratic president.