(Adds David Tepper quotes)
NEW YORK Oct 17 Billionaire investor Carl Icahn
warned on Monday that many S&P 500 companies are "way
overvalued," considering soft-to-weakening economic growth in
the United States as well as in emerging markets.
Reiterating his stance on equities, Icahn said on CNBC,
"I've been concerned for a few years, and more and more
concerned. I think it's very difficult when there (are) so many
people in the middle class that really don't have the income
that they counted on, pension funds are way underfunded ... in a
market, economy that has inflation."
Icahn, chairman of Icahn Enterprises, said he is cautious
about the U.S. stock market on a long-term basis, but on the
short-term period, it is "anybody's guess."
Icahn said he runs a large portfolio and that there are a
few gems in the market.
Icahn cited Herbalife Ltd, American International
Group Inc and Cheniere Energy Inc as "uniquely
undervalued." He added that it takes "years and years and years"
to reap huge profits from activism and that serious investors
need to be "extremely patient."
About Herbalife, Icahn declined to comment on Bill Ackman,
who has been on the opposite side of the bet on the stock, and
added that he stood by his major investment.
Herbalife is "undervalued, a good model and gives jobs to a
lot of people," Icahn said.
David Tepper, Appaloosa Management president and founder,
was on the same CNBC segment and also provided a gloomy backdrop
for U.S. equities: "It's a difficult environment. It's an
environment (with) OK, not great returns."
Tepper said he is "pretty cautious" on the market and "not
"We're pretty light on the stock market right now. And we
have a lot of cash. We're probably more positioned in the bond
market right now," he said.
On U.S. presidential candidates Hillary Clinton and Donald
Trump, Tepper said: "You have one person with a questionable
judgment and the other person that may be demented, narcissistic
and a scumbag. I'm not saying which one is which. You can make
your own decision on that."
Tepper said, "As far as support, I am sitting on the
sidelines. I'll probably vote for one - I'll vote at the end of
the day. I'm in Florida, so my vote counts."
(Reporting By Jennifer Ablan; Editing by Nick Zieminski and