by Bill Bonner
Daily Reckoning
DUBLIN – The Dow dropped 180 points yesterday – or about 1%.
And another clever billionaire says he is looking elsewhere for profits. Reuters:
Activist investor Carl Icahn on Monday said there was a chance the stock market could suffer a big decline, saying valuations are rich and earnings at many companies are fueled more by low borrowing costs than management’s efforts to boost results.
“I am very cautious on equities today. This market could easily have a big drop,” Icahn said.
Yes, dear reader, the smart money is getting out of U.S. stocks. And here’s our old friend Rob Marstrand explaining why: