Bill Ackman Says Excessive Leverage, Speculative Trading Are Distorting Stock Market
Summary
- Bill Ackman said excessive leverage and speculative trading are causing stock prices to move irrationally.
- He said the current market volatility is creating buying opportunities for Pershing Square, and cited Microsoft, Amazon and Alphabet as key investment targets.
- Ackman described Visa and Mastercard as two of the world's best companies and said Netflix is also a holding in Pershing Square's portfolio.
Forecast Trend Report by Period
Bill Ackman, founder of Pershing Square Capital Management, criticized irrational stock-price swings in the equity market driven by excessive leverage and speculative trading.
Walter Bloomberg reported on November 3 that Ackman compared the current stock-trading environment to a casino, saying excessive leverage and speculative activity were moving share prices irrationally. He specifically cited leveraged products and perpetual futures trading as problems.
Ackman added that the volatility is creating buying opportunities for Pershing Square. He named Microsoft, Amazon and Alphabet as key investment targets.
He also described Visa and Mastercard as two of the best companies in the world. Netflix, he added, is also a holding in Pershing Square's portfolio.
