Carl Icahn says there ‘very well could be a recession or even worse’
Famed investor Carl Icahn mentioned Tuesday an financial downturn could be on the horizon and he’s loaded on safety towards a steep sell-off out there.
“I think there could very well could be a recession or even worse,” Icahn mentioned on CNBC’s “Closing Bell Overtime” to Scott Wapner. “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 founder and chairman of Icahn Enterprises mentioned surging inflation is a main menace to the financial system, whereas the Russia-Ukraine conflict solely added extra uncertainty to his outlook.
The Federal Reserve raised rates of interest for the primary time in additional than three years in an try and battle inflation that’s operating at its highest degree in 40 years. Fed Chairmen Jerome Powell this week vowed robust motion on hovering costs, indication he is open to a price hike greater than the normal 25 foundation factors.
Icahn, a longtime activist investor and so-called company raider, mentioned he believes the system of firm boards must be mounted and weak administration could result in disasters.
“There’s no accountability in Corporate America. You have some very fine companies, very fine CEOs, but far too many that are not up to the task,” the longtime activist investor mentioned.
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