Dallas Mavericks owner Mark Cuban watches on from behind the bench during the second half of an NBA game against the Atlanta Hawks at State Farm Arena on February 22, 2020 in Atlanta, Georgia.
Todd Kirkland | Getty Images
Billionaire entrepreneur Mark Cuban isn’t convinced that the swift market rally is here to stay.
“I’m surprised. I think this is kind of buy the rumor and potentially we sell the news when reality sets in,” Cuban said Wednesday on CNBC’s “Closing Bell.” “I think people are naturally optimistic right now in terms of the market. I just don’t think they are really factoring in what we are going to see on the other side.”
Cuban, owner of the NBA’s Dallas Mavericks, revealed that he hasn’t bought any stocks in two weeks and is “trying to get more cash.”
The market bounced sharply in the past two weeks, with the S&P 500 jumping 25% from its 52-week low of 2,191.86 on March 23. Investors are betting on a turnaround ahead for the coronavirus crisis as cases in some of the hardest-hit regions began to show signs of slowing.
Cuban added he’s sticking with his core holdings of Netflix and Amazon.
“If I’m wrong and the market keeps on going up, my core holdings, Netflix and Amazon, are going to continue to do well,” Cuban said. “I just kept where I was. I haven’t added or subtracted.”
Netflix and Amazon have significantly outperformed the broad market this year, benefiting from the stay-at-home trend amid the widespread government-mandated shutdowns. Shares of Netflix and Amazon have gained 10% and 14% in 2020, respectively, while the S&P 500 has lost 15%.
The number of daily increases in coronavirus cases in the U.S. and globally has fallen since Friday, according to data from Johns Hopkins University. Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said Wednesday that coronavirus deaths look lower than initially thought, noting there should be a turnaround after this week.
Cuban also said the pandemic will end up improving capitalism with companies putting employees first.
Disclosure: CNBC owns the exclusive off-network cable rights to “Shark Tank,” which features Mark Cuban as a panelist.
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Billionaire entrepreneur Mark Cuban isn’t convinced that the swift market rally is here to stay.