(LibertySociety.com) – The stock market has been in the news more than usual over the past couple of days, with experts warning it’s incredibly volatile right now. Billionaire Mark Cuban is also repeating those concerns.
On Thursday, January 28, Cuban spoke to CNBC’s “Squawk Box” about the state of the market. He said he’s “hedged the heck out of” his portfolio because of concerns over valuations (what a company or asset is worth) across the market. Cuban pointed to the Federal Reserve’s near-zero interest rate.
According to Cuban, the low rate is causing the inflation of “appreciable assets,” and when deflation starts to take place on some of those assets, “it’s going to be scary.”
"I hedged the heck out of my portfolio. Absolutely it has me worried," says @mcuban on this week's market madness $GME $AMC $KOSS $NOK. "There will be a deflation of some sort in those appreciable assets and it's going to be scary when it happens." pic.twitter.com/y47OLBtxAa
— Squawk Box (@SquawkCNBC) January 28, 2021
If Cuban is right, the economy could take a hit. That’s the last thing the country needs to deal with as it’s trying to recover from the COVID-19 pandemic. Unfortunately, with President Joe Biden at the helm, it might be unavoidable.
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