Ackman Dismisses Stock Bubble, Sees Leveraged Trading as Culprit

Bill Ackman does not believe US share prices are in a bubble; his concern centres on short-term trading financed by debt, which he told CNBC on Tuesday had brought back “casino-type” markets.

The resulting sharp price moves are, in Ackman’s view, harmful for the US but beneficial for his firm Pershing Square, which exploits them to purchase equities at low prices.

Ackman’s View on What Is Inflating Stock Prices

He identified leverage – borrowed money amplifying both profits and losses – and one-day options, which are wagers on a stock’s closing price that same day.

BILL ACKMAN: STOCK MARKET IS “BROKEN” BY SPECULATIVE TRADING

Pershing Square founder Bill Ackman says excessive leverage and speculation cause irrational stock-price moves.

Ackman likened current conditions to casino-style markets, criticizing leveraged…

— Walter Bloomberg (@DeItaone) November 3, 2026

Ackman 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.

Such volatility has allowed his firm to purchase Microsoft during this year’s software sell-off and Amazon following its tariff-related decline.

Why Ackman Keeps Buying Stocks

Pershing Square notes that the hype surrounding AI infrastructure companies has diverted focus from other firms with sustainable earnings growth, making them inexpensive.

His firm forecasts its portfolio will expand earnings by roughly 20% annually over the next three to five years, compared with 13% for the S&P 500.

Ackman described Visa and Mastercard as among the most outstanding companies globally. Pershing Square acquired stakes in both in the second quarter, along with Netflix, and started forming an eighth new position for 2026 after the third quarter.

Why Ackman Discards the Roaring 1920s Analogy

Asked about a letter from Elliott Investment Management, which the Wall Street Journal said draws a parallel between the current period and the pre-Depression boom, Ackman responded.

Elliott pointed to spending financed by debt, public opposition to AI, and round-robin AI transactions in which chip manufacturers invest in AI companies that subsequently purchase their chips.

“I don’t see a Roaring 20s in the stock market,” he added.

Profit projections have risen markedly this year, Ackman said, and share prices appear justified relative to that expansion. Regarding the public backlash, he stated that the US is engaged in a global contest for superintelligence and cannot afford to decelerate.

Ackman noted that private startup investment exhibits more bubble-like behaviour. Nonetheless, he considered corporate-card startup Ramp’s valuation justified and said American Express should be worried. Ramp was assessed at $44 billion in June, per the firm.

Pershing Square’s next 13F – the disclosure form that major funds submit to US authorities – is due by mid-November and will reflect its holdings as of September 30.