Yeah...the problem with your analysis is that Icahn was never really "short" the market when he said those things. He owned big momentum stocks, as a matter of fact, Apple, Netflix, etc. Now he has a massive short position in the market, his money is now where his mouth was/is.

The first time in your analysis that he actually said he was hedging, the market took a nose dive of 20%. I think his advice is worth warrant, especially when you have people like Bill Gross saying similar.

It's of my opinion that we are in an asset bubble, but we could have a "blow off top" before we really see what happens. Stock declines also generally occur during election years after a 2 term President, so it's a generally good bet for a correction at the very least. But, if I really knew what was going on, I'd be rich.