Billionaire investor Carl Ica warned of the possibility of a significant drop in the stock, telling CNBC’s Scott Wappner that “wild rallies” in the market always come to a dramatic end.
During the stormy day for the stop market, Weppner posted the icon’s warning on the “halftime report”.
“In my day, I’ve seen wild rallies with a lot of false stocks, but there’s one thing they all have in common. Eventually they hit the wall and go into a painful painful correction. No one can predict when that will happen. But when that happens, look down, ”Ika said. “The other thing that they have in common is that it’s always said, this time it’s different. But it never turns out to be true.”
The investor declined to go into the specifics of his position, but told Wappner that it was a good hedge.
Ica’s cautious statement came as the US stock market plunged sharply on the first trading day of the new year. All three major indices were down more than 3% near noon, with the Dow down as much as 700 points.
The start of 2021 marks the year after the banner year for the markets, with the S&P 500 growing 16% and some tech stocks surging dramatically while the Kovid-19 epidemic overturned the world economy.
Due to the rapid growth in stocks and balloon valuation, some Wall Street strategists have become wary of the market in the near term. Morgan Stanley strategist Mike Wills said in a note to customers Monday that the market was “fit for a drawdown.”
Ica has made a name for itself as an activist investor. On Monday morning, Herbalife announced that it was buying back 600 million shares from Ikahan and that activist representatives would walk out of the board. Ica said in a statement that the time for activism at Herbalife, which he had invested more than eight years ago, but he plans to remain a small shareholder.
.
