Three Investing Billionaires Have Recently Come Out With Cautious Statements On The Stock Market

In unusual timing, we’ve recently heard from three investing billionaires (Warren Buffett, Carl Icahn, and Stanley Druckenmiller) suggesting that the stock market is getting rich and fully valued. From O’Rourke: [Buffett] noted that the equity market was fairly valued and stocks were not overvalued. Specifically, Buffett said They were very cheap five years ago, ridiculously cheap, and Thats been corrected. He also noted, Were having a hard time finding things to buy. One has to take note when the worlds most high profile investor (a long investor), cannot find stocks to buy although he reports his business is improving. Buffett was not the only Billionaire to weigh in last week. Carl Icahn responded candidly when asked his view on the market. Right now, the market is giving you a false picture. The market tells you that you are doing well, but I dont think a lot of companies are doing that well. They are taking advantage of very low interest rates. So, obviously, you dont have to be a financial genius to understand if I can borrow at 3% or 4% and buy assets maybe my own stock that is yielding 9%, 10% or 11%, I am going to make a lot of money. In one sense or another that is what is going on.I do think at 17x that you have to be pretty well hedged. These comments come a little more than a week after Stanley Druckenmiller opined that, But if you tell me QE is going to be removed over nine or 12 months, that’s a big deal because when it’s my belief that QE has subsidized all asset prices. And you remove that subsidization, the market will go down. Druckemiller elaborated My first mentor and boss, Dr. Ellis in Pittsburgh, used to tell me it takes hundreds of millions of dollars to manipulate a stock up, but the minute you have this phony buying stop, it can go down on no volume and it can just reprice immediately. I personally think as long as this game goes on, assets will stay elevated. But when you remove that prop – and let’s face it, the Fed has said they’re targeting those asset prices – those prices can adjust immediately.
Source: http://www.businessinsider.com/druckenmiller-icahn-and-buffett-on-the-stock-market-2013-9

Stock market opens mixed after report on surge in home prices

Stocks faded in the last half-hour of trading Tuesday after staying positive most of the day. Traders struggled with conflicting news about the economy. One report on Tuesday showed that home prices in July rose the most in more than seven years. Another showed that Americans’ confidence in the economy slipped in September. The Dow fell 66 points to close at 15,334.
Source: http://abcnews.go.com/Business/wireStory/stock-market-fades-close-20360820

Stock Market Fades at Close

The Dow Jones industrial average was down seven points to 15,393 shortly after the market opened Tuesday. The Standard & Poors 500 index is down two points to 1,700. The Nasdaq is up two points to 3,767. More business news Which presidents raised the debt ceiling? Since 1980, the debt ceiling has been raised 39 times. It was raised 17 times under Ronald Reagan, four times under best stock buys Bill Clinton and seven times under George W.
Source: http://www.washingtonpost.com/business/us-stock-market-opens-mixed-with-housing-and-consumer-confidence-in-focus/2013/09/24/8639cec4-2520-11e3-9372-92606241ae9c_story.html

Stock Market Rises Slightly at Midday

Stocks faded in the last half-hour of trading Tuesday after staying positive most of the day. Traders struggled with conflicting news about the economy. One report on Tuesday showed that home prices in July rose the most in more than seven years. Another showed that Americans’ confidence in the economy slipped in September. The Dow fell 66 points to close at 15,334.
Source: http://www.latimes.com/business/la-fi-mo-stock-market-opens-mixed-20130924,0,2981411.story

US stock market opens mixed with housing and consumer confidence in focus

One report showed that home prices in July rose the most in more than seven years. Another showed that Americans’ confidence in the economy fell slightly in September as many people became less optimistic about hiring and pay increases. The Dow Jones industrial average was up 12 points to 15,413 shortly before 12 p.m. Tuesday.
Source: http://abcnews.go.com/Business/wireStory/stock-market-rises-slightly-midday-20357662

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