Carl Icahn warns investors that wild stock rallies always eventually 'hit a wall and go into a major painful correction'

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Carl Icahn warns investors that wild stock rallies always eventually 'hit a wall and go into a major painful correction'
FILE PHOTO: Carl Icahn gives an interview on FOX Business Network's Neil Cavuto show in New YorkReuters
  • The billionaire fund manager Carl Icahn told CNBC's Scott Wapner on Monday that he was "pretty well hedged right now."
  • "In my day I've seen a lot of wild rallies with a lot of mispriced stocks, but there is one thing they all have in common: Eventually they hit a wall and go into a major painful correction," he said. "Nobody can predict when it will happen, but when that does happen, look out below."
  • The Icahn Enterprises chairman added: "Another thing they have in common is it's always said it's different this time. But it never turns out to be the truth."
  • Visit Business Insider's homepage for more stories.

The billionaire fund manager Carl Icahn reminded investors that stock-market euphoria can't last forever. In an interview with CNBC's Scott Wapner on Monday, he said all rallies eventually end in crashes.

"In my day I've seen a lot of wild rallies with a lot of mispriced stocks, but there is one thing they all have in common: Eventually they hit a wall and go into a major painful correction," he said. "Nobody can predict when it will happen, but when that does happen, look out below."

The Icahn Enterprises chairman added: "Another thing they have in common is it's always said it's different this time. But it never turns out to be the truth."

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Icahn did not detail his positioning but said he was "pretty well hedged right now."

On Sunday it was reported that Icahn sold $600 million of his position in Herbalife, a nutritional-supplement company.

"The time for activism has passed as the Company has grown, and I don't typically invest billions of dollars in companies where our role as activist is not needed," Icahn said in a statement.

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