In a recent interview with the Financial Times, billionaire investor Carl Icahn admitted that he was wrong about one major trade. Icahn, who is known for his activism in the corporate world, said that he had not followed his own advice of not trying to pick the market on a short-term or intermediate-term basis.
Icahn has been a major player in the stock market for decades, and his admission is a reminder that even the most experienced investors can make mistakes. It also serves as a warning to those who try to time the market, as it is impossible to predict the future.
Icahn’s advice is to focus on long-term investments and to diversify your portfolio. He also recommends that investors do their own research and not rely solely on the advice of others. By following these tips, investors can minimize their risk and maximize their returns.In a recent Financial Times interview, billionaire investor Carl Icahn admitted he was wrong when he made a massive bet that the stock market would crash. His bet lost about $1.8 billion on hedging positions between 2017 and the first quarter of 2023. Icahn’s investing arm, Icahn Enterprises LP, had used a strategy of shorting broad market indexes, individual companies, commercial mortgages and debt securities.
Icahn explained that he had used margin loans he borrowed from IEP to make additional investments outside of his publicly traded vehicle. However, a stinging report from short-seller Hindenburg Research accused the company of inflating asset values and questioned whether a margin call would send the company into a spiral if the stock price were to fall. IEP’s stock did fall after that report, at the cost of about $6 billion of market cap.
Icahn addressed the report and offered an update on IEP’s recent earnings, saying he was fully in compliance with loan terms. Earlier this month, IEP disclosed a federal probe into its corporate governance and other issues. It’s not clear if that was related to the Hindenburg report. IEP shares have fallen 32% in the year to date, while the S&P 500 has gained 9%.The stock market has been booming in the U.S. recently, but it looks like it may be taking a pause. Futures are inching higher, but the market is expected to take a break from its recent surge. Meanwhile, Disney+ and Hulu are set to start removing shows next week.rnrnOne man is facing a dilemma of his own. He wants to buy a $40,000 car, but his wife said no. He’s trying to figure out what to do next.rnrnThe housing market is also a hot topic. Many are wondering if it has hit a bottom yet. Ray Dalio, the founder of Bridgewater Associates, believes the current debt-ceiling debate could set the stage for a “disastrous financial collapse”.rnrnIt’s clear that the stock market is in a state of flux. Investors should be cautious and keep an eye on the news for any developments that could affect their investments.