Bill Ackman: “The Stock Market Has Become a Giant Gambling Den”

[Financial News]  

Famed investor Bill Ackman warned on the 3rd (local time) that the stock market was becoming a giant gambling den because of leveraged exchange-traded funds (ETFs).
Ackman, founder of hedge fund Pershing Square Capital Management, told CNBC that day, “I feel every day that the stock market is collapsing,” and said, “Current stock prices are trading at absurd levels.” He added, “It’s good for long-term investors to be able to buy at ridiculously low prices, but I don’t think it’s generally good for the country as a whole.”
Ackman criticized the market, saying, “It has returned to a casino-type market where leverage was 95%. This can’t fundamentally be good for the economy or society, and (speculation) is driving huge movements in stocks.”
He said it was also a good opportunity for hedge funds to buy stocks at bargain prices.
Ackman said that at the start of the year, when fears that artificial intelligence (AI) would destroy the software-as-a-service (SaaS) market—the “SaaSpocalypse”—were dominating the market, he bought Microsoft (MS) shares. He also scooped up Amazon shares after their price fell because of President Donald Trump’s tariffs. He added that he bought Alphabet shares when their price was volatile after ChatGPT launched.
However, Ackman was concerned about leveraged ETFs that track multiples of daily price moves, perpetual futures, and the sports betting boom. He warned that these could turn ordinary investors into speculators seeking to strike it rich. He stressed that this was an attitude that would ultimately lead to catastrophic consequences.
Ackman said, “This is good for long-term investors like us at Pershing Square, but it does the country as a whole no good.”

[email protected] Song Kyung-jae Reporter