"Now Is a Buying Opportunity for Blue-Chip Stocks" – Bill Ackman Proposes Contrarian Bets Amid U.S.–Iran Tensions

[The Financial News] As military conflict between the United States and Iran has driven a surge in volatility across global financial markets, billionaire investor Bill Ackman has described the current environment as "a rare buying opportunity for blue-chip stocks" and urged investors to take a contrarian approach.
On the 29th (local time), Ackman, the chairman of Pershing Square Capital Management, wrote on his social network account X (formerly Twitter), "Some of the world's highest-quality blue-chip companies are trading at extremely cheap prices," adding, "Ignore the bears."
He also expressed an optimistic view on the escalating geopolitical tensions. Ackman said, "This war is one of the most one-sided wars in history and will ultimately result in a positive outcome for both the United States and the world," and added, "We can expect a substantial 'peace dividend' once the war is over."
His remarks came at a time when the war has pushed international oil prices sharply higher, stoking fears of stagflation and severely undermining investor sentiment, which is why they have drawn particular attention.
Over the past month, the S&P 500 Index and the NASDAQ Composite Index (NASDAQ) in the United States have each fallen by around 7%. The Fear and Greed Index compiled by CNN has also dropped to a level classified as "extreme fear." Ackman interpreted this anxiety in the market as an opportunity to accumulate assets instead.
As specific investment targets, he pointed to Fannie Mae (Federal National Mortgage Association (FNMA)) and Freddie Mac (Federal Home Loan Mortgage Corporation (FMCC)), the two major U.S. housing finance institutions. Ackman said, "The shares of these two institutions are absurdly cheap," calling them "a top-tier asymmetric investment opportunity where the upside potential far exceeds the downside risk." He went on to say, "These stocks could rise tenfold sooner than many expect."
The shares of these institutions were delisted in 2010 in the aftermath of the 2008 global financial crisis and are currently traded on the over-the-counter market (OTC). Immediately after Ackman's comments became public, the stocks recorded steep gains in OTC trading.
Ackman is the founder and CEO of Pershing Square Capital Management, which built its reputation through an activist investment strategy. In recent years, Pershing Square Capital Management has focused on large-cap listed stocks and is widely seen as a firm that helps set the tone for the broader market.


hsg@fnnews.com Han Seung-gon Reporter