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“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 undergo a great painful correction. No one can predict when it will happen, but if it does, check below. ‘
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That’s billionaire investor Carl Icahn speaking to CNBC during Monday’s sell-off about the potential for a major stock market decline. “Another thing they have in common is that it is always said, ‘It’s different this time,’” he continued. “But it never turns out to be the truth.”
So how does he prepare to navigate a possible correction? Icahn apparently did not go into the details of the composition of his portfolio, but did say that it is well hedged.
Here’s more from CNBC:
Separately, Icahn reportedly owns approximately $ 600 million, or more than half of his stake, in Herbalife Nutrition Ltd. HLF unloaded,
and gives up his seats on the company’s board.
That gives him a bet of $ 400 million.
As for the broader market, stocks took a beating during Monday’s trading session, with the Dow Jones Industrial Average DJIA,
of more than 500 points. The Nasdaq Composite COMP,
and S&P 500 SPX,
were also firmly lower.