Bill Ackman Rules Out a US Stock Bubble, Blames Leveraged Bets for Wild Swings

Bill Ackman says he sees no bubble in US stock prices. His worry is short-term trading on borrowed money, which he told CNBC on Tuesday has revived “casino-type” markets. Ackman said the wild price swings this creates are bad for the country but good for Pershing Square, which uses them to buy stocks cheaply. What Ackman Says Is Inflating the Stock Market He named leverage, or borrowed money that multiplies gains and losses, and one-day options, bets on a stock’s same-day close. He also cited sports betting and perpetual futures , contracts with no end date. “We’re back to the casino-type markets when there was 95% leverage,” he said . Those swings let Pershing buy Microsoft in this year’s software sell-off and Amazon after its tariff slump.

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