Billionaire investor Carl Icahn warned of the possibility that stocks could fall significantly at some point, and CNBC’s Scott Wapner said ‘wild marches’ in the market always reach a dramatic end.
Wapner reported Icahn’s warning about ‘Halftime Report’ during a turbulent day for the stock market.
“In my day I saw a lot of wild rallies with a lot of wrong prices, but there’s one thing everyone has in common. Eventually they hit a wall and go into a serious painful correction. No one can predict when it’s going to happen. “But if it does happen, look out below,” Icahn said. “Another thing they have in common is that it’s always said, it’s different this time. But that never seems to be the case. “
The investor did not want to take into account the details of his positions, but told Wapner that he was well hedged.
Icahn’s warning comes as the US stock market fell sharply on the first trading day of the new year. The three major indices were near lunch by more than 3% lower, with the Dow up to 700 points.
The rough start to 2021 follows a banner year for the markets, which saw the S&P 500 rise 16% and boost certain technology stocks dramatically, even as the Covid-19 pandemic boosted the world economy.
The rapid rise and valuable valuations for equities have made some Wall Street strategists wary of the market in the short term. Morgan Stanley strategist Mike Wilson said in a statement to customers on Monday that the market was ‘ripe for a withdrawal’.
Icahn has made a name for himself as an activist investor. Herbalife announced on Monday morning that it would repurchase $ 600 million worth of Icahn shares and that the activist’s representatives would resign from the board. Icahn said in a statement that the time for activism at Herbalife, in which he had invested more than eight years ago, is over, but he plans to remain a shareholder on a smaller scale.