Icahn Pours Cold Water On Stocks, Says "Market Could Easily Have A Big Drop"

Carl Icahn, who is currently speaking at the Reuters Global Investment Outlook Summit, just poured cold water over the Fed's 16,000 DJIA EOD price target.ICAHN: ‘VERY CAUTIOUS ON EQUITIES, MARKET COULD EASILY HAVE BIG DROP'ICAHN SAYS MANY COS. EARNINGS ARE A ‘MIRAGE,’ REUTERS SAYSICAHN: DOESN’T WANT FIGHT WITH APPLE,NO PLANS TO WALK AWAYBut... but.. two POMOs... Still, not too late for K-Fed and his merry unlimited balance sheet trading men to pull a record third POMO today and keep the "wealth effect" illusion going. The credit cycle is getting long in the tooth... Was it just a month ago that we warned "Carl Icahn's nightmare" was about to occur? - as the credit market became saturated...With the inability to proxy-LBO every and any firm, the fun ends - as Icahn just let everyone know... it's called a credit 'cycle' for a reason.Of course - it's all about carry..Average: Your rating: None Average: 4.9 (7 votes)

"Personal views" of Carl Icahn on the market

As wrote Carl Icahn on square Table of shareholdersPersonal views on reporting on my remarks re markets and APPL at the Reuters SummitReuters has been quite accurate that I am concerned about the level of the market.  But I made it clear on the conference call (and I believe that he told Reuters), that it is practically impossible to predict what will make a market in the short term.  There are too many variables.Often when we are concerned about the market, cover us up to a certain point, and it is one of those moments.  Interestingly, our investment fund had an annualized return of about 27% since January 1, 2009, and this return would have been larger if we had not covered.  As I have often said, collection of short-term market movements is like predicting how many sevens player of hot"will continue to roll.Apple, I told Reuters, I believe that Apple is not a Bank and that a big redemption must be implemented, but also taking advantage of the other ways that money can be made more productive.  While I do not ingest, at the risk of being pretentious, I think that in the area of capital there is very little that better then us and we hope to be able to participate, as a significant shareholder, with Apple, in this area.Average: Your rating: no Average: 3 (4 votes)

Markets Turmoiled By Icahn Truthiness

What Carl giveth, Carl can taketh away. We have warned for a month that credit markets have been decompressing (amid saturation) even as stocks went only one way. The S&P has hit almost its LABIA-based Fed fair-value and VIX/VXV hit extreme complacency levels so we were primed for a fall so it's ironic that Icahn pricked the bubble (at least for one day). More ironic still was CNBC's dismissal of his warning "as he is not a market timer" - when they wait with baited breath for his next 'buy AAPL' tweet. Bill Dudley's economic bullishness (and hawkish policy talk) also weighed on stocks. Credit was weak from the start - even as equities broke to new records; Treasury yields slid all day (with a small bounce higher after Europe closed). The USD's early weakness retraced to unch by teh close - rallying from the US open (but EURJPY was a big driver of weakness in stocks). Commodities did not bounce - all flushed lower around the European close and never recovered as stockd dumped.No Dear today... but close... (as the NASDAQ test up towards 4000 - managing  3999.47 - before tumbling in its high-beta way...Credit has been flashing warnings for a while that the game (in the short term at least) is up...But of course, today's drop in the context of the last month is hardly death for equities - though given our context of a never-falling market, it is a shock...Spot the difference - Icahn's honesty tanked EURJPY (carry) and thus stocks declined...FX markets were a roundabot with Europe selling the USD and US buying it...Treasuries were a one-way street lower in yield (with a bounce at the European close)Commodities rallied into the US open and European close then tumbled and flatlined all afternoon (even as USD rose and stocks slid)...VIX bounced notably back above 13%Charts: BloombergAverage: Your rating: None Average: 4.6 (5 votes)