Activist investor Carl Icahn made headlines on Monday by expressing his concern over the stability of the stock market during an interview on FOX Business Network.
On the surface, Icahn’s prediction of a stock market downturn just weeks after his declaration of a $240 price target for shares of Apple Inc. AAPL 0.44% may seem contradictory. Here’s a look at exactly what Icahn said and what a market downturn could mean for Apple shareholders.
Cause For Concern
In his interview on Monday, Icahn said that stock investors have “a lot to be concerned about” when it comes to current share prices. Icahn believes that the extended environment of low interest rates has been keeping the market afloat, but that the house of cards could come crashing down when the Federal Reserve begins raising rates.
“By keeping interest rates this low, you are creating bubbles that you don’t even know about,” Icahn explained, adding, “It’s not will it happen, it’s when it will happen.”
Contradiction?
Icahn’s ominous interview on Monday might leave Apple shareholders puzzled, as it comes…
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