Billionaire investor Mark Cuban on CNBC's "Closing Bell" Wednesday said he isn't hopeful that the recent market rally signals the impact of novel coronavirus (COVID-19) pandemic on markets has bottomed out.
According to the "Shark Tank" star, it could just be a matter of investors buying the rumor and selling the news.
"I think people are naturally optimistic right now in terms of the market," Cuban told CNBC. "I just don't think they are really factoring in what we are going to see on the other side."
The NBA Dallas Mavericks owner said that while he is "hopeful" for the long-term, the market could see another coronavirus-caused slump in the short-term.
Cuban added that he hadn't purchased any stocks in the last two weeks, and instead, he is "trying to get more cash."
"If I'm wrong and the market keeps on going up, my core holdings, Netflix and Amazon, are going to continue to do well," the Broadcast.com founder said at the CNBC show. "I just kept where I was. I haven't added or subtracted."
Why It Matters
U.S. stocks have recovered somewhat in the past two weeks after seeing historic wipeouts as coronavirus spread in the country.
The COVID-19 cases have increased to 432,132 in the U.S. at press time, according to data from Johns Hopkins University, and continue on the upward slope.
The most optimistic forecast from National Economic Council Director Larry Kudlow put a timeline of four to eight weeks on when the economy could restart, as reported by Bloomberg.
Despite the recent gains, S&P 500 is down 14.9% year-to-date, Nasdaq Composite is down 9.8%, and Dow Jones has seen 17.9% of its value erased.
In comparison, Amazon is up 10.5% year-to-date at $2,041.56 and Netflix is up 14.7% at $371.06.
Photo Credit: Gage Skidmore via Wikimedia.
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