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

Bill Ackman, founder of hedge fund Pershing Square Capital Management, warned that the U.S. stock market has become a "giant gambling den" because of the growth of leveraged exchange-traded funds (ETFs), according to remarks he made to CNBC on the 3rd (local time). He said, "I feel every day that the stock market is collapsing," and added that "current stock prices are trading at absurd levels."

Ackman characterized the market as having "returned to a casino-type market where leverage was 95%," arguing that such conditions "can't fundamentally be good for the economy or society" and that speculation is driving large movements in individual stocks. He said that while depressed prices offer a good opportunity for long-term investors and hedge funds to buy at bargain levels, he does not believe the environment is generally beneficial for the country as a whole.

He pointed to specific instruments of concern, including leveraged ETFs that track multiples of daily price moves, perpetual futures, and the expanding sports betting market. Ackman warned that these products could turn ordinary investors into speculators seeking quick gains, an attitude he said would ultimately lead to catastrophic consequences.

Ackman also described his own positioning. At the start of the year, when fears that artificial intelligence would disrupt the software-as-a-service (SaaS) sector, which he referred to as the "SaaSpocalypse," dominated markets, he bought Microsoft shares. He later acquired Amazon shares after their price fell in response to tariffs announced by President Donald Trump, and bought Alphabet shares during volatility following the launch of ChatGPT. He summarized the dynamic by saying, "This is good for long-term investors like us at Pershing Square, but it does the country as a whole no good."