Famed financier Carl Icahn stated Tuesday a financial slump might be on the horizon and he is packed on defense versus a high sell-off in the market.
“I think there very well could be a recession or even worse,” Icahn stated on CNBC’s “Closing Bell Overtime” to ScottWapner “I have kept everything hedged for the last few years. We have a strong hedge on against the long positions and we try to be activist to get that edge… I am negative as you can hear. Short term I don’t even predict.”
The creator and chairman of Icahn Enterprises stated surging inflation is a significant danger to the economy, while the Russia-Ukraine war just included more unpredictability to his outlook.
The Federal Reserve raised rates of interest for the very first time in more than 3 years in an effort to fight inflation that is performing at its greatest level in 40 years. Fed Chairman Jerome Powell today pledged hard action on skyrocketing rates, showing he’s open to rate walkings more than the standard 25 basis points.
“I really don’t know if they can engineer a soft landing,” Icahn stated. “I think there is going to be a rough landing… Inflation is a terrible thing when it gets going.”
Icahn, a long time activist financier and so-called business raider, stated he thinks the system of business boards requires to be repaired and weak management might cause catastrophes.
“There’s no accountability in Corporate America. You have some very fine companies, some very fine CEOs, but far too many that are not up to the task,” the long time activist financier stated.
To position for an economic crisis in America, Icahn stated he’s wagering versus shopping centers and industrial realty.
