Nov 17 (Reuters) - Carl Icahn isn't forecasting a dramatic stock market drop quite yet, but the billionaire investor is still bracing for a market sell-off in the next three to five years, he told Reuters on Monday.

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"I am still concerned that one day you'll see a break like you had a few weeks ago," Icahn said at the Reuters Investment Outlook Summit in New York on Monday, "but it won't come back."

With the Standard & Poor's 500 index now up more than 10 percent for the year and trading at 2,041, many investors have put October's short-lived slide behind them, saying low interest rates and a growing mergers and acquisitions boom will continue to fuel the bull market.

But Icahn is more concerned and is predicting a downturn. "It's really a question of when that is going to happen, in my opinion. It could be three years, it could be three months, it could be three days. But I really do believe there will be a major correction in the next three to five years, at least."

Even as many investors see blue skies ahead, Icahn is taking precautions. "We short S&Ps against a very large portfolio. We have the benefit of not having to worry that much about hedge fund partners," he said, speaking at the Reuters Global Investment Outlook Summit.