Famed investor Carl Icahn mentioned Tuesday an financial downturn may very well be on the horizon and he’s loaded on safety in opposition to a steep sell-off available in the market.
“I feel there very properly may very well be a recession and even worse,” Icahn mentioned on CNBC’s “Closing Bell Overtime” to Scott Wapner. “I’ve saved every little thing hedged for the previous couple of years. We have now a powerful hedge on in opposition to the lengthy positions and we attempt to be activist to get that edge… I’m unfavorable as you’ll be able to hear. Brief time period I do not even predict.”
The founder and chairman of Icahn Enterprises mentioned surging inflation is a serious menace to the economic system, whereas the Russia-Ukraine battle solely added extra uncertainty to his outlook.
The Federal Reserve raised interest rates for the primary time in additional than three years in an try to battle inflation that’s operating at its highest stage in 40 years. Fed Chairman Jerome Powell this week vowed robust motion on hovering costs, indicating he is open to charge hikes greater than the standard 25 foundation factors.
“I actually do not know if they’ll engineer a mushy touchdown,” Icahn mentioned. “I feel there’s going to be a tough touchdown… Inflation is a horrible factor when it will get going.”
Icahn, a longtime activist investor and so-called company raider, mentioned he believes the system of firm boards must be mounted and weak administration might result in disasters.
“There is no accountability in Company America. You may have some very effective firms, some very effective CEOs, however far too many that aren’t as much as the duty,” the longtime activist investor mentioned.
To place for a recession in America, Icahn mentioned he is betting against malls and commercial real estate.