Just because Carl Icahn expect AAPL stocks to still double [10]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 [10]- Icahn just noted that the market is "extremely overheated"...
1/2 I believe the market is extremely overheated – especially high yield bonds.
— Carl Icahn (@Carl_C_Icahn) June 24, 2015 [11]
... and warned against listening to permabulls and those who, like Bank of America which does not foresee a recession for the next decade [12], 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.
2/2 If more respected investors had warned about the market in ’07, we might have avoided the crisis in ’08.
— Carl Icahn (@Carl_C_Icahn) June 24, 2015 [13]
Well investors did warn... [14]and were promptly mocked [14].
https://www.youtube.com/watch?v=LfascZSTU4o [14]
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.
[15]