Carl Icahn: Markets overpriced; earnings misstated
Markets look "way overpriced" and many investors have put themselves in "dangerous" positions, activist investor Carl Icahn contended Wednesday.
"The public in my opinion is going to get really hurt," he said on CNBC's "Fast Money: Halftime Report ." "This market is in very dangerous territory."
Icahn stressed many of the points he made in a video posted this week titled "Danger Ahead." He warned that stocks could see a tough run amid the Federal Reserve's near-zero interest rate policy and headwinds like financial engineering for the sake of earnings growth.
"I think earnings are misstated and sort of a complete mirage," he said Wednesday.
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Icahn also warns about potential problems caused by tax loopholes, stock buybacks and liquidity in the high-yield bond market. Amid his concerns, Icahn has hedged his investments much more, he told CNBC.
Read More 5 things that keep Carl Icahn up at night
Despite his dire outlook, Icahn recently raised his stake in battered natural gas company Cheniere Energy (NYSE MKT: LNG) to 11.43 percent. He also built up a huge stake in crushed mining company, Freeport-McMoRan (NYSE: FCX).
Freeport and Cheniere shares had fallen 60 and 31 percent this year, respectively, as of Tuesday's close.
— CNBC's Scott Wapner contributed to this report
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