Stocks will plunge, inflation will persist, and the US economy will feel more pain, Carl Icahn says. Here are his 14 best quotes from a new interview.

carl icahn

Carl Icahn.REUTERS/Chip East

  • Carl Icahn expects stocks to fall, inflation to remain, and the US economy to suffer more pain.

  • He built a stake in Twitter before Elon Musk’s bid, and could put $1 billion behind it if asked.

  • Icahn downplayed previous bets against crypto, and said he wasn’t surprised by the FTX collapse.

Carl Icahn warned the stock market’s epic rally would not last, called on the Federal Reserve to keep hiking interest rates until inflation breaks, and issued an ugly outlook for the US economy in a recent interview with CNBC.

The billionaire investor and chairman of Icahn Enterprises also revealed that he is betting against the S&P 500, may have shorted cryptocurrencies in the past, and may have put $1 billion behind Elon Musk’s Twitter bid when asked by Tesla CEO.

Here are 14 of Icahn’s best quotes, slightly edited for length and clarity:

1. “I’m still quite bearish on what will happen. A rally like this is of course very dramatic to say the least, but you have them all the time in a bear market, and I still think we are in a bear market.”

Also Read :  Crime, The Economy Stoke Campaigns In Final Days | News, Sports, Jobs

2. “Whenever you have higher interest rates that have moved as they are here, you have an inverted yield curve, assets near a 5% yield – you have a economy. .”

3. “There is a way to go down because inflation will not go away in the near term, and you will have more of a recession, more of an income reduction.” (Icahn discussed the outlook for stocks.)

4. “I don’t think inflation is over. When I look at the ’70s, it took years and years and years – you can’t just turn a magic wand and get inflation.”

5. “The Fed needs to keep raising. If it doesn’t, then it’s going to be worse for the future. They need to fix this inflation. It’s not something where you just take a magic pill and it goes away.”

6. “There are a lot of things that need to happen to turn this economy around, to get us out of a recession.” (Icahn flagged several headwinds including continued wage inflation, and a blow to household wealth from falling stocks and home prices.)

Also Read :  Key events in developed markets next week

7. “I’m short the S&P 500. The S&P has a lot of tech stocks that are too high for most. I think with high interest, they’re not worth what they’re selling for.”

8. “Many people called me about it and wanted me to do something about it as an activist. I prepared and watched it. The stock went down a little bit, so I started buying stock. I’ll try to get on its board.” (Icahn was referring to Twitter.)

9. “I’m so glad Musk came along. He stands for the same damn thing, and he’s a lot richer than me. I feel like he’s the perfect person to do this. And he doesn’t need the money.” ( Icahn shares Musk’s concerns that Twitter is stifling the free speech of users on its platform.)

10. “No one called me to come in. I could have done it if he had called me. I could have put it up for $1 billion, at the right price.” (Icahn was asked if he was invited to participate in Musk’s $44 billion bid for Twitter.)

Also Read : Launches The UPS Store’s Metaverse Business Center in Partnership with Coffee Digital

11. “I think it could flood. It’s just one of the risks you have in our economy.” (Icahn discussed the explosion of Sam Bankman-Fried’s digital-asset exchange, FTX, and the crypto sales it caused.)

12. “I’m a smart person. I try to understand crypto and why it’s valuable, but I don’t understand what it really has to offer. That’s why I never bought any crypto. In fact, I could which shortened it. once or twice.”

13. “If you look at crypto, you look at ethereum, you look at these companies. What do you do if you don’t like the way it’s run? It’s a lawless place . There’s no accountability that I’ve seen, and I’ve never seen it.”

14. “I’m not surprised it happened because there are no rules, no laws. It’s like the Wild West.” (Icahn refers to FTX.)

Read more: America’s biggest wealth manager explains why he’s telling clients that getting involved in all stocks is the right move to make right now — and why real estate investing isn’t going anywhere

Read the original article on Business Insider


Leave a Reply

Your email address will not be published.

Related Articles

Back to top button