Bill Ackman, CEO of Pershing Square, pushed back against comparisons between current market conditions and the “roaring twenties” that preceded the Great Depression, arguing that stock valuations remain supported by fundamentals.
In an interview with CNBC, Ackman said earnings expectations have risen meaningfully this year and that market multiples are “actually reasonably low relative to the growth inherent in the market.”
While Ackman dismissed concerns about bubble-like activity in public markets, he acknowledged some froth in private venture investing.
“I think in private markets, you’re seeing a little bit more bubble-like activity, particularly in the kind of FOMO [in the] private venture space,” he said. “There is some, but a lot of it is justified.”
When asked about growing political pushback against AI development, including calls for a pause on the technology, Ackman framed AI as a national security imperative.
“It’s a global race for super intelligence. We don’t want to get there second,” he said. “That’s existential to the U.S.”
Ackman dismissed the notion that political opposition to AI data centers would significantly slow development, noting that many states would welcome the job creation.
“I think we have no choice,” he said, comparing attempts to slow AI development to hypothetically trying to slow the pace of electricity adoption in America.
While political rhetoric around AI might help some candidates win votes in the midterms, he argued, “practically speaking, we can’t slow down” the country’s AI efforts.
The hedge fund manager did identify areas of concern in the broader market, though not in traditional equities.
“One day options, people using a lot of mental leverage, a lot of money being, you know, betting on the outcome of sports—that’s where I think there’s some definitely some fluff,” Ackman said.
He expressed skepticism about both polls and prediction markets, while offering his expectation that the House would flip in the upcoming midterms.
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