Bill Ackman, CEO of Pershing Square, is optimistic about the stock market's future. He forecasts potential market growth, predicting that geopolitical tensions and inflationary pressures will ease. Speaking openly on CNBC's "Squawk on the Street" on Thursday, Ackman said resolving the Ukraine-Russia and Iran conflicts could be key to creating a better market environment. He views these resolutions as essential for market growth.
Ackman highlighted that ongoing wars and high inflation are currently holding back market growth. He suggested that achieving peace in the Middle East could have widespread benefits, not only for the region but also for the United States. "Once the overhang of the war is done — and it sounds like we're also potentially heading in the right direction with Russia-Ukraine — energy prices could come way down, and obviously that would be very good for inflation and markets, " he stated.
Energy prices have been a persistent problem, with U. S. oil prices rising 72% in 2026 and Brent crude increasing 83%. This surge has fueled inflationary pressures, with gasoline prices accounting for more than half of the recent rise in the consumer price index. Inflation remains above the Federal Reserve's 2% target, with consumer prices climbing 3.7% year over year in September. The Fed now faces the challenge of maintaining high interest rates to control inflation.
While discussing his market outlook, Ackman also explored specific stock opportunities. He expressed strong confidence in Netflix, despite the streaming giant's recent issues with advertising and revenue guidance. Netflix shares fell over 5% on Wednesday but rebounded more than 3% on Thursday. Ackman dismissed concerns about Netflix's content library, stressing the management's strength and user engagement. He noted that the stock is trading at 18 times earnings, which he called "one of the lowest valuations in history, " and he expects earnings to grow in the mid to high teens.
Ackman also highlighted Meta Platforms, a major component of Pershing Square's portfolio. Despite a 6% drop in Meta's shares on Thursday after better-than-expected third-quarter revenue, Ackman was unfazed. He attributed the stock's decline to short-term market behavior and praised Meta's advancements in artificial intelligence. Ackman believes Meta's investments in compute infrastructure are crucial and could yield substantial returns.
Ackman also reiterated his bullish stance on Fannie Mae and Freddie Mac, where he holds significant stakes. He foresees their stock value increasing tenfold, calling them "the most asymmetric investment" in the stock market. Ackman noted these entities have rebuilt their capital, now holding five times the capital they historically had.
As Ackman looks to the future, his optimistic forecasts depend on resolving geopolitical conflicts and stabilizing inflation. His confidence in stocks like Netflix, Meta, and the government-sponsored enterprises reflects his broader belief in the market's potential for growth once these current challenges are addressed.
