Billionaire businessmen Barry Diller has urged everyone to hoard cash, saying there is ‘great speculation’ in the stock market right now, as he calls TikTok’s recent deal to partner with Oracle and Walmart ‘a crock.’
‘Personally, and professionally, every nickel you can, keep it in whatever bank, wherever it’s banked,’ said Diller, the chairman of IAC and Expedia Group, in an interview on Tuesday with CNBC’s Squawk Box.
‘Generally, I think for any speculation, and I think the market right now is a great speculation, I would stay home,’ Diller said.
Stock indexes on Tuesday halted a four-day losing streak, driven by fears of a new round of lockdowns in Europe and the deadlock in Congress over the size and shape of another coronavirus stimulus bill.
Though the main indexes have recovered their losses since the steep sell-off in March, Diller argued that the recovery might have been driven in part by a speculative frenzy.
He warned that as the November presidential election approaches, investor uncertainty will only increase, potentially driving volatility in markets.
‘Each day from now until November is going to get more and more concerning, and more and more decisive, and more and more difficult,’ said Diller, a longtime Democrat donor.
‘I actually think if I could wake up in mid-November, maybe it’s even late November given what might be contested, I would rub that magic genie,’ he added.
Diller, who supports Democratic presidential candidate Joe Biden, predicted that if Biden wins the election, there would be an initial ‘downdraft’ in markets in expectation of higher taxes and increased regulation, but believes that in the long run a Biden presidency wouldn’t materially impact the business environment.
‘As far as business is concerned, I don’t think long term there’s going to be any particular difference’ between Trump and Biden, said Diller. ‘I think there will be differences personally. I think people are going to pay higher taxes, particularly the wealthy. I think there are going to be things that are going to be done, really done, to deal with inequality.’
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SOURCE: Daily Mail, Keith Griffith