Tuesday, October 19, 2021


Carl Icahn says the market over the long term will definitely ‘hit the wall’ due to cash printing

Longtime activist investor Carl Icahn stated Monday that the U.S. markets might see main challenges over the long run within the…

By Staff , in Gold , at October 19, 2021


Longtime activist investor Carl Icahn stated Monday that the U.S. markets might see main challenges over the long run within the face of extreme cash provide and rising inflation.

“In the long term we’re definitely going to hit the wall,” Icahn stated Monday on CNBC’s “Quick Cash Halftime Report.” “I actually assume there shall be a disaster the best way we’re going, the best way we’re printing cash, the best way we’re going into inflation. In case you go searching you, you see inflation throughout you and I do not understand how you cope with that in the long run.”

The Federal Reserve and Congress have unleased trillions of {dollars} in stimulus to rescue the financial system from the Covid-19 pandemic. The central financial institution’s stability sheet swelled by greater than $3 trillion amid its open-ended quantitative easing program, whereas the federal government has allotted over $5 trillion in stimulus to help Individuals by the well being disaster.

Icahn was adamant about not making a market timing name, however he believes in the future over the long run the markets pays the value for these insurance policies.

On the again of those unprecedented stimulus packages, the S&P 500 has quickly worn out the pandemic-induced losses and rebounded to a brand new excessive. The fairness benchmark is up greater than 19% in 2021, sitting simply 1.4% under its all-time excessive reached early September.

The huge cash provide has partly contributed to rising worth pressures within the financial system. Inflation ran at a recent 30-year excessive in August amid provide chain disruptions and terribly sturdy demand.

The core private consumption expenditures worth index, which excludes meals and power prices and is the Fed’s most well-liked measure of inflation, elevated 0.3% for the month and was up 3.6% from a yr in the past.

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