Tag: carl icahn

Posted on

Carl Icahn: Earnings Are Shockingly Overinflated

With most Corporates about to report Carl Icahn believes earnings are overinflated by at least 20%. Watch the video below. Plus, he reaffirms his view that the stock market is overpriced and most likely in a bubble.

I have been saying the same thing for quite a while now. For instance, Is Today’s “Real” Stock Market P/E Ratio Above 30? -OR- BlackRock: Most Of Corporate Earnings Growth (If Any) Is Accounting Driven

I have said it before and I will say it again. Today’s distortions are so great that the FED’s Ponzi Finance makes Bernie Madoff look like a boy scout. But its more than that. Everyone is playing the same accounting game. Whether it is through low interest rates, share buybacks or outright accounting gimmicks.

While impossible to calculate, I would say that a more normalized environment would add 5 to 10 points to today’s P/E ratios. By the way, Shiller’s Adjusted P/E Ratio is still at 24. Turning an already expensive market into “are you freaking kidding me overpriced accident” waiting to happen.

Interesting times ahead, that’s for sure.

z32

Carl Icahn: Earnings Are Shockingly Overinflated Google

Posted on

Carl Icahn: Earnings Are Way Overinflated

Carl Icahn believes earnings are overinflated by at least 20%. Watch the video below. Plus, he reaffirms his view that the stock market is overpriced and most likely in a bubble.

I have been saying the same thing for quite a while now. For instance, Is Today’s “Real” Stock Market P/E Ratio Above 30? -OR- BlackRock: Most Of Corporate Earnings Growth (If Any) Is Accounting Driven

I have said it before and I will say it again. Today’s distortions are so great that the FED’s Ponzi Finance makes Bernie Madoff look like a boy scout. But its more than that. Everyone is playing the same accounting game. Whether it is through low interest rates, share buybacks or outright accounting gimmicks.

While impossible to calculate, I would say that a more normalized environment would add 5 to 10 points to today’s P/E ratios. By the way, Shiller’s Adjusted P/E Ratio is still at 26. Turning an already expensive market into “are you freaking kidding me overpriced accident” waiting to happen.

Interesting times ahead, that’s for sure.

z32

Carl Icahn: Earnings Are Overinflated Google

Posted on

Carl Icahn Releases A Video Everyone Must Watch

I don’t know about you, but I am absolutely fed up with the US Government and Media. It is nice to see someone of Carl Icahn’s statue to come out and put them on the spot. Directly. And wait till you hear what he has to say about our financial markets.

“God knows where this is going. It’s very dangerous and could be disastrous. It’s like a movie theater and somebody yells fire. There is only one little exit door. The exit door is fine when things are OK, but when they yell fire, they can’t get through the exit door…and there’s nobody to buy those junk bonds. Stocks are way overpriced.

I found myself agreeing with 95% of what he had to say and I command him for coming out and speaking his mind. If you participate in financial markets and/or care about what happens in the US, the video below is a MUST watch.

z33

Carl Icahn Releases A Video That Everyone Must Watch Google

Posted on

Epic Bull Vs. Bear Battle

If you participate in financial markets the video below is a must watch.

Carl Icahn and Larry Fink, BlackRock Chairman and CEO discuss the state of today’s financial market.  As a quick summary…..

Carl Icahn: High-yield market is about to blow up (he indicated previously that he has a large short position there or building one). Just as it did in 2007-2009. This will have a net negative impact on the stock market. Just as it did in 2008.

Larry Fink: No way in hell, we don’t have the leverage we had in 2007.

My Comments: I believe Carl Icahn is on the right side of the trade here. The massive amount of leverage Larry Fink dismisses is still there. Its just that a large chunk of it got shifted onto the FED’s balance sheet and the stock market.

Here is what I believe the trigger point will be: As soon as investors lose “net faith” in the FED you will see this whole thing fall apart. Fast. As far as I am concerned they have already lost the window of opportunity to raise interest rates. They will now be stuck in the worst case scenario…..zero interest rates, no way to stimulate as another round of QE can backfire and collapsing capital markets. As soon as investors come to this realization, the jig will be up. And that should happen much sooner than most people anticipate.

Anyway, watch this video. It is definitely worth 5 minutes of your time.

z32

Epic Bull Vs. Bear Battle  Google

Posted on

What Carl Icahn Thinks You Should Do In Today’s Market

Soros Fund has a large short position. Just a few weeks ago, Jim Rogers said the following Jim Rogers: Major Correction Ahead…Central Banks To Panic. Now, Carl Icahn is warning people that we are once again at 2000 and 2007 tops.

“What is better…..making 1-2% or losing 30% as people did in 2008? Right now is extremely dangerous.”

Forget about my line of thinking here for a second. Who else do you need to tell you that we are in a massive bubble and that a big correction is coming. Warren Buffett? Actually, WSJ ‘Buffett Indicator’ Flashes Warning for Stocks

Anyway, if you are sick and tired of your typical Wall Street analysis…… “We are in the early stages of a secular bull market and right now is a buying opportunity of a lifetime”, do yourself a favor and watch the video below.

z33

What Carl Icahn Thinks You Should Do In Today’s Market Google

Posted on

Why Carl Icahn Believes The Market Is About To Crash

Soros Fund has a large short position. Just a few weeks ago, Jim Rogers said the following Jim Rogers: Major Correction Ahead…Central Banks To Panic. Now, Carl Icahn is warning people that we are once again at 2000 and 2007 tops.

“What is better…..making 1-2% or losing 30% as people did in 2008? Right now is extremely dangerous.”

Forget about my line of thinking here for a second. Who else do you need to tell you that we are in a massive bubble and that a big correction is coming. Warren Buffett? Actually, WSJ ‘Buffett Indicator’ Flashes Warning for Stocks

Anyway, if you are sick and tired of your typical Wall Street analysis…… “We are in the early stages of a secular bull market and right now is a buying opportunity of a lifetime”, do yourself a favor and watch the video below.

z33

Why Carl Icahn Believes The Market Is About To Crash Google

Posted on

Carl Icahn: We Are At 2007 Top Right NOW. Extremely Dangerous Time.

Soros Fund has a large short position. Just a few days ago, Jim Rogers said the following Jim Rogers: Major Correction Ahead…Central Banks To Panic. Now, Carl Icahn is warning people that we are once again at 2000 and 2007 tops.

“What is better…..making 1-2% or losing 30% as people did in 2008? Right now is extremely dangerous.”

Forget about my line of thinking here for a second. Who else do you need to tell you that we are in a massive bubble and that a big correction is coming. Warren Buffett?

Anyway, if you are sick and tired of your typical Wall Street analysis…… “We are in the early stages of a secular bull market and right now is a buying opportunity of a lifetime”, do yourself a favor and watch the video below.

z33

Carl Icahn: We Are At 2007 Top Right NOW. Extremely Dangerous Time. Google

Posted on

Why Carl Icahn Is Betting Big On This Move

High Yield Spread

Quite a few people emailed me and asked me to expand a little bit on this post Carl Icahn: A Matter Of Time Before Stocks Implode  Particularly, what Mr. Icahn meant by stating that the High Yield spread is probably the best investment opportunity today.

Take a look at the 2007-2009 spike in junk spreads on the chart above. That is what happens when any idiot and even dead people can get a $1 Million mortgage to speculate in the real estate market. A few people, including Carl Icahn, made a huge amount of money from this move.

Today, we have an identical situation. Junk yields should not be this low. Yet, because interest rates are at zero and the FED has flooded everything with liquidity, anyone can get a loan. For instance, corporates who should not be able to get a loan, due to their inability to ever repay, are able to borrow massive amounts of money at 5% or below. That will eventually blow up. Just as it did in 2007-2009.

That is to say, Carl Icahn expects a similar move to what we saw at that time. I would have agree with his assessment. And when it does develop, a leveraged position might lead to massive gains once again. The only question is, WHEN?

z32

Why Carl Icahn Is Betting Big On This Move Google

Posted on

Carl Icahn: A Matter Of Time Before Stocks Implode

Carl Icahn is extremely worried about today’s stock market valuation levels. He goes on to suggest that it is just a matter of time before it all comes crashing down. I tend to agree. I am still not sure how Apple is supposed to reach $240 a share in such a market environment, but that’s beside the point. Listen below…..I highly recommend it.

Z31

Carl Icahn: A Matter Of Time Before Stocks Implode Google

Posted on

Carl Icahn: Don’t Expect Fast Oil Recovery

Over the last few weeks I have argued that oil price collapse appears to be more structural in nature as opposed to “temporary”.

What’s the difference?

Well, I believe investors and/or traders who are trying to time the oil market bottom in anticipation of making a large fortune will be mostly on the net negative side of the trade. Don’t get me wrong. Oil prices will bounce, at times significantly. Yet, anyone anticipating or betting on a large V shape recovery will be disappointed. Carl Icahn has the same view. If you follow the oil market I highly encourage you to watch the video below. A very solid point of view.

Z30

Carl Icahn: Don’t Expect Fast Oil Recovery Google