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

• 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."
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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."

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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