- Ackman thinks the market is broken. “Every number of days, I feel like markets are broken,” the Pershing Square founder told CNBC’s “Squawk Box” on Tuesday. “Stocks trade at prices that make no sense to me.” He said the system is “back to the casino type markets when there was 95% leverage,” which is leading to massive moves in individual stocks.
- He singled out speculative products. Ackman warned that the rise of one-day leveraged vehicles, perpetual futures and sports betting is dangerous for investors who treat the stock market as a get-rich-quick scheme. His comments came on the same day the CFTC cleared perpetual futures on individual stocks to trade on regulated US exchanges for the first time, according to CoinDesk.
- The volatility has been an opportunity for Pershing. The fund bought Microsoft when it was pummeled in the “SaaSpocalypse” earlier this year, Amazon when it fell after President Trump’s tariffs, and Alphabet when the stock moved “massively” after ChatGPT’s launch. “It’s good for us long term, us being Pershing Square,” he said. “I don’t think it’s good for the country.”
- He named his favorite holdings. Ackman called Visa and Mastercard among the world’s “greatest” businesses and highlighted Netflix, in which Pershing disclosed a position in August.
What Happened?
Bill Ackman, the billionaire founder of Pershing Square Capital Management, told CNBC on Tuesday that rising speculative trading and leverage are causing wild price swings. “Yes, it’s good if you’re a long-term investor and you can buy at a stupid price. I don’t think it’s good for the country generally,” he said. He pointed to one-day leveraged vehicles, perpetual futures and sports betting as products drawing investors into short-term speculation.
Why It Matters?
Ackman’s warning lands during a stretch of sharp single-stock moves, as investors dump technology names on AI spending worries. His point is that leverage magnifies these swings and disconnects prices from business value, which he sees as bad for the economy even if it creates bargains for patient investors. The timing is notable: regulators are moving the other way, with the CFTC saying equity perpetual futures will give US traders a regulated alternative to offshore venues.
What’s Next?
Watch whether Pershing Square adds to positions in names such as Microsoft, Amazon, Alphabet, Visa, Mastercard and Netflix if volatility persists, since Ackman has signaled he sees dislocations as buying opportunities. The rollout of equity perpetual futures on US exchanges will test his concern about leverage, though the CFTC has not yet said which exchanges will list them or which stocks will be available. Regulators and lawmakers may face more pressure to address leveraged retail products if large intraday swings continue.
