Published On: Wed, Nov 19th, 2014

Carl Icahn Says Market May Tank, Buys More eBay Anyway

Carl Icahn Screen shot - - 05 -10 -carl-icahn-crash-stock

Activist investor Carl Icahn thinks the bull market may run out of gas, but he isn’t trying to predict when. He spoke at a Reuters conference, “It is a question of when it is going to happen, in my opinion. It could be three years, it could be three months, it could be three days. But I really do believe there will be a major correction in the next three to five years at least.”

What strategies does Icahn recommend? “We short S&Ps against a very large portfolio… we like being a minority. I’m not saying go short the market. I’m talking in general terms.”

So when he says “general terms” he means it, because there are a few stocks he is betting on.

Carl Icahn is taking a victory lap on eBay after successfully convincing management to spin off Paypal. Ebay was resistant to the move and wanted to keep the company intact, but Icahn, who has a large stake in the company, put pressure on and got results.

Icahn increased his stake from 31 million shares to 45.8 million. He now owns 3.7% of the company’s outstanding shares, according to Business Insider. He was less thrilled about Netflix and sold 335, 000 shares to just 1.4 million.

Icahn seems to part ways with activist investor Bill Ackman when it comes to Herbalife. Ackman has a large short position in Herbalife and has claimed the business model is a fraudulent, but Icahn told Reuters he approves of the business model, and with shares down 54%, he thinks the stock is undervalued.

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