So far this summer, selling in May and going away hasn’t been a prudent move. Since May 1, the SPDR S&P 500 ETF Trust(NYSE:SPY) is up 5.8% and is consistently making new all-time highs.
Despite the summer surge, there is a growing number of major fund managers that believe the S&P 500 Index is on the brink of a huge collapse.
These experts aren’t crackpot doomsayers, either. They’ve earned billions of dollars and respectable reputations recognizing market moves over the years. Here’s what they have to say about the state of the market:
Carl Icahn Sees “Day of Reckoning” for SPY
As of the most recent filings of Icahn Enterprises LP (NASDAQ:IEP), Icahn is maintaining a 149% net short position in the stock market. Why? He explained his theory in a lengthy recent interview.
“I have hedges on, I’m more hedged than I ever was … [The market] is way overvalued at 20 times the S&P and I’ll tell you why: a lot of it is a result of zero interest rates.”
Icahn added that a “day of reckoning” is coming for stocks. He’s seen the pattern many times in his lifetime. Icahn wasn’t definitive about when the crash is going to happen, but said it might not come until 2017. He also gave no indication of how far the SPY might fall.
George Soros Enters SPY Short as Britain Exits Europe
George Soros believes…
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