Billionaire entrepreneur Mark Cuban tells savvy investors that in the current market atmosphere, he keeps “a whole lot of cash” on the sidelines and actually owns very few stocks.
“I’m down to maybe four dividend-owning stocks, two shorts, and Amazon and Netflix,” Cuban recently told CNBC.
“Put aside tariffs, put aside what the president is doing, he’s got his reasons,” said Cuban.
“There just no way where you can say, ‘I just trust everything that’s going on.’ And that concerns me,” he says.
“We borrowed from the future to kind of pump up the current market,” said Cuban, owner of the NBA’s Dallas Mavericks.
Cuban doesn’t seem to be alone in his pessimistic view of the market.
Americans were less upbeat about Wall Street even as the U.S. unemployment rate hovered near an 18-year low and the economy recorded its fastest growth pace in four years in the second quarter, a New York Federal Reserve survey released on Monday showed.
The regional Fed’s barometer on consumers’ perceived chances of U.S. stock prices increasing in 12 months fell to 40.3 percent in July, which is the lowest level since October 2016 when it was 37.64 percent, Reuters reported.
Their view on stocks softened despite the benchmark S&P 500 index racking up 3.6 percent in total return last month on strong company earnings and solid economic data.
In general, U.S. consumers were less optimistic about household finances a year from now. “One-year-ahead expectations of changes in the household’s financial situation deteriorated slightly and are now comparable to the values in July 2017,” the N.Y. Fed wrote on the latest survey results.
While consumers believed household income would grow, their expectations for more family spending fell to 3.2 percent in July. They expected home prices, gasoline and medical costs to soften, while they reckoned food prices would rise.
It is unclear what caused consumers to turn less confident about their finances.
(Newsmax wire services contributed to this report).
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