Bill Ackman warns of 'casino' stock market as speculative trading grows — SkimNews
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- Bill Ackman told CNBC's "Squawk Box" on Tuesday that "every number of days" he feels markets are broken and stocks trade at prices that "make no sense to me," adding that buying at a "stupid price" helps long-term investors but isn't good for the country generally.
- Bill Ackman compared today's market to "the casino type markets when there was 95% leverage," blaming that leverage for "massive moves" in stocks and calling the environment inherently bad for the economy and for society.
- Bill Ackman warned that the rise of one-day leveraged vehicles, perpetual futures and sports betting is dangerous for investors treating the stock market as a get-rich-quick scheme, an attitude he said could have disastrous consequences.
- Pershing Square turned those same dislocations into bargains, buying Microsoft when it was "pummeled" during the "SaaSpocalypse" earlier this year, Amazon after it fell following President Donald Trump's tariffs, and Alphabet after the stock moved "massively" following ChatGPT's launch.
- Visa and Mastercard are among the stocks Ackman is especially bullish on, which he called among the world's "greatest" businesses.
- Netflix is another bullish Ackman position, which he disclosed in August.
Why it matters: For retail investors chasing one-day leveraged vehicles, perpetual futures and sports betting, Ackman says 95%-leverage "casino" markets make get-rich-quick behavior dangerous and potentially disastrous, while Pershing Square, his hedge fund, converts the same Microsoft, Amazon and Alphabet dislocations into bargain buys.
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