Yesterday, two big names in investing on Fox Business were talking about a potential market correction, but it’s not the first time these giants have tried to warn the world. Carl Icahn and Bill Gross are concerned about the stock market and want the public to know. I’m not sure why they’re so forthcoming with these predictions, but I find them problematic. Of course their calls for crashes and disasters aren’t necessarily that new.
When Carl Icahn warned of another downturn on March 11, 2011, the S&P 500 was 1,304; it’s up 62% since then.
March 11, 2011 7:33 pm
Icahn warns another downturn may lie ahead
And Bill Gross made his infamous prediction about the death of the cult of equities back in July 2012; the S&P 500 is up 54% since then, but at some point it will crash…I just don’t see all 54% being wiped out. I certainly don’t see the close-to-200% gain since March 2009 being wiped out either.
July 31, 2012, 3:03 PM ET
Bill Gross: We’re witnessing the Death of Equities
Yesterday, the market had an excuse to sell off, but after an early rally faded into a loser, buyers stepped up to the plate. Of course we closed with an uneventful slight gain which does underscore mounting confusion and even fear. Short term action in the market can always be irrational and sometimes short term can mean years, not weeks or months. What’s rational now is that investors should be concerned about a pullback, but I think a market crash isn’t in the offering yet.
Yes, it will happen one day and so will the post-crash rebound that sees equity market rally back to all-time highs. It’s a game that’s been played for centuries.
Sometimes the biggest players in the game understand how to move emotions and in the process perhaps create opportunities for themselves even if less experienced players/investors find themselves missing out or making mistakes.
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