Friday, October 10, 2014

Investor Icahn sees stock market correction coming: CNBC

(Reuters) - Billionaire investor Carl Icahn said on Thursday a stock market correction is "definitely coming" and he is worried about the economy, as U.S. stocks tumbled on fresh worries about global growth.

Icahn told CNBC in an interview that he still has a lot of money invested in the stock market and has taken measures to protect his portfolio.

"I've been putting on quite a bit of hedges," Icahn said, adding that he was shorting the benchmark Standard & Poor's 500 .SPXstock index, which was down 1.77 percent.

The blue-chip Dow Jones industrial average tumbled more than 300 points, or 1.78 percent.

In November Icahn said at a Reuters Summit the market could "easily have a big drop," a sentiment he reiterated on CNBC.

"I've been quite concerned for the last year or so, but we still have a hell of a lot of stocks in our portfolio, so ... but I have a lot of hedges on," Icahn said.

Asked about a possible stock market correction, Icahn said, "It's definitely coming."

Stocks had rallied steadily for months, underpinned by central bankers' easy money policy designed to stimulate growth. But "you can't keep an economy up just with the Fed," Icahn said. "The Fed alone can't do it."

Icahn was being interviewed with his son, Brett, and another portfolio manager, David Schechter, about their open letter to Apple Inc (AAPL.O) urging the company to buy back shares.

Brett Icahn and Schechter said they still own shares of on-demand media company Netflix(NFLX.O), another of their big and successful investments.

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