Icahn’s comments Wednesday echo the theme of the 79-year-old investor’s special video entitled “Danger Ahead”, which offered a similar dire warning about impending troubles for the market.
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Lamenting America’s questionable economic recovery, Icahn slammed the high corporate tax rate of 35 percent for punishing companies that want to repatriate profits to the U.S.
Billionaire investor Carl Icahn released a 15-minute video warning that interest rates hovering close to zero are creating investment bubbles in real estate, art, corporate earnings and high-yield bonds.
Wapner asked Icahn why he’s down on high-yield bonds when he recommended to Apple should use low rates to buy back stocks.
Of course, Icahn made it clear in his video that he’s thinks Apple is strong enough to sustain large buybacks, while other companies are not.
Icahn said he thinks Trump – who he sparred with in 2010 over a casino – is the best candidate to fix the dysfunction.
“I think at this moment in time, he’s the only candidate that speaks out about the country’s problems”, Icahn said.
Next, Icahn recalled that in 2007 he became concerned that “in certain instances, the public could get badly hurt”, but he thought this was “to no avail, and I never really got it out”. I hate to see it go down the tubes and that’s what’s sort of happening.
“I would say keep cash”, Icahn said “You’re only making 1 percent on your cash – what’s better?” Trump has also said he would recruit Icahn to negotiate with China. “They’re punishing the little guy again because if that money came back, it would create jobs”, Icahn said, referring to the nation’s legislators. But he told USA TODAY he is open tohelping Trump in other ways if Trump wins the White House in 2016.
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With this, Icahn said that it is time to modify the tax code and increase the taxes investment professionals are tasked to settle, and according to USA Today, experts also agree with Icahn’s sentiments.
