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Carl Icahn Says "Market Is Extremely Overheated", Slams Permabulls

Tyler Durden's picture




 

Just because Carl Icahn expect AAPL stocks to still double from here (even as he found numerous greater fools to sell all of his NFLX stock to, the kind of fools who think a stock split adds to value) doesn't mean he doesn't think the market is not a bubble. Quite the contrary.

As the billionaire investor just tweeted, following his early disclosure that he is still very bullish on AAPL att least until he finds enough willing buyers - which for a position of his size could only be the company itself, which explains his constant push for AAPL to boost its buyback - Icahn just noted that the market is "extremely overheated"...

 

... and warned against listening to permabulls and those who, like Bank of America which does not foresee a recession for the next decade, refuse to admit reality, saying the 2008 bubble could have been avoided if more had spoken up about the risk of a bubble in 2007.

Well investors did warn... and were promptly mocked.

https://www.youtube.com/watch?v=LfascZSTU4o

As for this particular warning, there is one problem: when the Fed itself is blowing the biggest bubble ever, then what? And what happens to Icahn's AAPL holdings once the Fed finally admits it was all the biggest bubble in capital markets history?

*  *  *

Finally, it is worth repeating that if indeed HY is a super bubble, then stocks have a major problem: the credit cycle has turned and a dismal dose of reality is about to come upon US equity markets.

 

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Wed, 06/24/2015 - 11:26 | 6229670 Dr. Engali
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If only one could tweet a bullet......

Wed, 06/24/2015 - 11:28 | 6229690 suteibu
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Indeed.  There were more than a few warning about 2007.  They were all laughed at and I'm sure Icahn was in on the joke.

 

Wed, 06/24/2015 - 11:31 | 6229707 InjectTheVenom
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GO AWAY , CARL.

Wed, 06/24/2015 - 11:48 | 6229767 disabledvet
disabledvet's picture

More like "where's my billion dollars Carl?"

IEP is publicly traded, stock is off fifty percent from its all time highs and the thing is a money pit.

Unlike Netflix I might add...

Wed, 06/24/2015 - 12:03 | 6229816 quintago
quintago's picture

$700M worth of NFLX !

Wed, 06/24/2015 - 12:17 | 6229876 JonNadler
JonNadler's picture

so Carl is shorting everything in sight and waiting for the market to bottom so he can but everything> Oh OK

Wed, 06/24/2015 - 12:44 | 6229956 weburke
weburke's picture

no, he bought ebay and a ton of it, and he is lying, and so are the markets, ebay went from 1152 p/e to a pe of 25, oh sure. 

Wed, 06/24/2015 - 15:03 | 6230442 tc06rtw
tc06rtw's picture

 
 … his comments will  REV IT UP !

Wed, 06/24/2015 - 11:48 | 6229771 FinalEvent
FinalEvent's picture

Those last two charts are insane!

Wed, 06/24/2015 - 12:11 | 6229843 max2205
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Right now the only problem is that high yield hasn't broken down just yet.

Wed, 06/24/2015 - 11:38 | 6229726 aliki
aliki's picture

peter schiff was tarred & feathered in 2006 for ringing the alarm bells on the housing market.  he was told then to STFU and "get on board".

scott wapner and his fast $$$ halftime crew have taken their shots at him once again for attempting to raise awareness on this reckless fed policy. these guys on CNBC are hilarious; they claim theres "no inflation anywhere" and this morning, they reference a report where the middleclass is now borrowing $$$ just to meet their rents.

im with carl on this 1; sold my entire stock & bond portfolio last year along with my house. theres a storm coming and if you were fortunate enough to make some coin on the easy fed ride up, u better not be dumb enough to let them take it all back when they are forced to start draining the system. my little sister leaves for college next year. at $55,000 a year, im just not sure how much longer the sheeple will buy this "there no inflation anywhere" theme

used to be only 1 way to combat inflation: 1. raise interest rates. now we have 2 ways: 1. raise interest rates 2. lie.

Wed, 06/24/2015 - 12:23 | 6229901 Bay of Pigs
Bay of Pigs's picture

Raising interest rates a little bit wont do anything to combat inflation. And yes, they will continue to lie about it as the currency is debased.

Wed, 06/24/2015 - 12:47 | 6229964 eatthebanksters
eatthebanksters's picture

Yearling calves ~$4.50/lb. on the hoof...three years ago it was $1.32/lb.  Artichokes $2 to $4 each depending what size, organic milk $8.99/gallon, apples $1.50 to $2.00 each (depending on weight), my health insurance, $350/mo to $800/mo in the last three years...no inflation, huh? Fuck me, who are they kidding.

Wed, 06/24/2015 - 11:39 | 6229733 KnuckleDragger-X
KnuckleDragger-X's picture

Carl is one of the clowns who helped create this dirty, little joke. He just never expected to be part of the punchline......

Wed, 06/24/2015 - 11:42 | 6229745 Elliott Eldrich
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"Here bears... heeeerrrreeee bears bears bears bears bears... I've got a nice football that you really can kick this time. No, really! The Fed won't swoop in and buy the whole board and yank the ball away again! Really!"

Anybody crazy enough to make short plays in this market must be placing their trades from a rubber room...

Wed, 06/24/2015 - 11:59 | 6229808 aliki
aliki's picture

this has much less to do with the stock market than it does the real economy.  if your crazy enough to think this experiment ends well, you should be back in the same padded room they stuck you in 2008.

and for the record, i only play the market from the long side when the fed is buying everything in sight. cashed out the longs up here in the clouds, will wait til the next crash, and then load-up when the fed comes in & starts openly buying U.S. equties. nobody in congress will get in their way just like they didn't back in 2008 when the fed wanted to buy bonds with $$$ that doesn't exist. JMO but i don't get in the way of the worlds largest hedge fund that doesn't ever have to worry about redemeptions. ill play along side them.

rule #1 in my finance class was "don't fight the fed", so i don't. if & when they are forced to bring rates close to the yield on the S&P500, you better be liquid. all that $$$ that went into "stocks with bond like characteristics" will go into bonds with bond like characteristics.

i suggest you go watch the gary cohn from goldman sachs interview from yesterday; dude admitted people are being pushed out the risk curve and have no choice since its the only place they attain a decent return. single most dangerous thing you can do in this game is mis-price risk. they've been doing it for 7 years so its compounded itself pretty firmly. if the velocity of the move towards the yield on the S&P 500 is anything less than the 7 they put in, shit hits the fan. i believe fischer said he wants the fed funds rate between 4-5% inside the next 2-3 years. he's either smoking crack or he's smoking crack.

Wed, 06/24/2015 - 11:49 | 6229756 Everybodys All ...
Everybodys All American's picture

Ole Carl must be getting ready to go short. You might get a little more respect if you just came out and said how massively rigged this whole stock market has become in these last few years.

Wed, 06/24/2015 - 11:50 | 6229780 thunderchief
thunderchief's picture

Carl Icahn, 

The ghost of TWA Airlines.

Good luck taking your loot to purgatory, Carl.

You'll need a big stack to buy a golden ticket upstairs after all the screwing you've done down here.

Wed, 06/24/2015 - 12:19 | 6229884 BullyBearish
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This A$$hat, Uncle Carl is calling himself a "Respected Investor"???   It's like calling Hitlery a nurturing woman.

Wed, 06/24/2015 - 13:11 | 6229980 Blankenstein
Blankenstein's picture

.

 

Wed, 06/24/2015 - 11:27 | 6229675 Soul Glow
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They've been over heated for awhile.  Old news iCan.

Wed, 06/24/2015 - 11:27 | 6229676 nuvolari
nuvolari's picture

He just wants to buy them cheaper not at this hefty levels.

10% dip and he be buyin like crazy. And wont be tweeting about it !

Wed, 06/24/2015 - 11:28 | 6229685 mtl4
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Classic iCon headfake.........watch for him to buy the dip with both fists.

Wed, 06/24/2015 - 11:28 | 6229687 Bill of Rights
Bill of Rights's picture
Black middle schooler challenges Obama

https://www.youtube.com/watch?feature=player_embedded&v=3a-5jYdlusU

 

BRILLIANT!

 

Wed, 06/24/2015 - 11:28 | 6229689 Yen Cross
Yen Cross's picture

  It's too late for you Carl... Dante has a nice ringside seat for you in his 10th circle of hell.

Wed, 06/24/2015 - 11:31 | 6229703 Soul Glow
Soul Glow's picture

I'm sure he'll enjoy his ringside seat.

Wed, 06/24/2015 - 11:31 | 6229704 Toolshed
Toolshed's picture

Please, Carl has no motive behind this spew other than profit. Obviously, he is now positioned to make gazillions from the impending crash, so hurry up and crash already! What a scum sucking pig. I just hope these asshole .01%ers live long enough to be publicly executed.

Wed, 06/24/2015 - 11:34 | 6229715 khakuda
khakuda's picture

Something will break eventually.  Ever growing soverign debt that can't ever be rapaid, the unintended consequences of ZIRP and QE, which have yet to surface in the form of a crisis (pensions, insurance companies), obvious issues of student debt, bankrupt social security, runaway healthcare costs, lack of retirement savings, over priced real estate, auto and inflated financial markets.

The Fed stepping in during a crisis was one thing, but spending the next decade preventing markets from healing and encouraging more speculation will prove to be epic FAIL brought to us by the believers in free lunch economics.

Wed, 06/24/2015 - 11:37 | 6229720 Soul Glow
Soul Glow's picture

It's easy to think we're losing and the Fed is winning but gold is at $1200 which is double it's 2008 bottom.  Sure stocks are up times 3 and bonds have stayed elevated in price but things could be worse.

And yes soon the markets will break.  The President's Working Group on Financial markets will go short stocks and bonds and long gold to benefit from the crisis.  Remember, they can't waste a single oppurtunity!

Buy silver

:)

Wed, 06/24/2015 - 11:37 | 6229724 Catullus
Catullus's picture

If the prices had never gone up, they never would have gone down?

Under the current interest rate environment, I'd say buying stuff and hoping a bigger sucker will buy for more later is a good strategy.

What's interesting that people don't seem to want to buy stuff, they want to buy an asset class that offers the least wealth protection (stocks)

Wed, 06/24/2015 - 11:42 | 6229742 unplugged
unplugged's picture

Carl, you are an idiot on 2 fronts here:  you call them "markets" and you call them "investors" - what a moron

Wed, 06/24/2015 - 11:45 | 6229758 fromthinair
fromthinair's picture

Carl Icahan. He is a poster child for everything that is wrong with America. God, have mercy on him for he not know what he say, writes, tweets, does or whatever. He is a deceptecon. He falls in the same category .. "What's under my pillow?? Ben, did you do that .. Ha Ha Hahahahaha ....."

http://just-a-thought-from-thinair.blogspot.com/

 

http://just-a-thought-from-thinair.blogspot.com/2015/05/whats-under-my-p...

Wed, 06/24/2015 - 11:53 | 6229789 fromthinair
fromthinair's picture

just America .. no the whole world.. I don't have to write that all the time... it is everywhere.

Wed, 06/24/2015 - 11:47 | 6229765 Atomizer
Atomizer's picture

If Carl drops a Apple from the tree, will Tim Cook catch the apple with his ass cheeks?

Wed, 06/24/2015 - 11:48 | 6229768 besnook
besnook's picture

these guys are all talking their books which obviously contains a lot of underwater shorts.

Wed, 06/24/2015 - 11:53 | 6229784 Bobbo
Bobbo's picture

Now he complains!

....

10:00 AM - Icahn owns 52,760,848 shares AAPL @ $128.65
10:30 AM - Icahn pronounces on AAPL
11:00 AM - Icahn owns 52,760,848 shares AAPL @ $129.48
________________________________
One hour of "work::  52,760,848 x $0.83 = $43,791,503.84
One hour of "work".  I felt a little twitch in my iPhone when it happened--probably the battery getting ready to burn out for the third time.

Wikipedia has a nice history of Icahn's purchases and Tweets about AAPL.  He pulls this shit on a regular schedule.  Are people who own .92% of a company allowed to pump the market in this manner?

http://www.zerohedge.com/news/2015-05-18/carl-icahn-would-tim-cook-buyba...

Wed, 06/24/2015 - 13:06 | 6230021 kahunabear
kahunabear's picture

A humble good deed from a respected investor. A crumb for the masses. I almost feel part of the club.

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