Bill Ackman warns of 'casino' stock market as speculative trading grows
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Bill Ackman, founder of Pershing Square Capital Management, warned that U.S. equity markets have returned to "casino type" conditions reminiscent of periods when investors used 95% leverage, as speculative trading activity grows. The comments from the billionaire hedge fund manager flag rising leverage and retail-driven speculation as potential sources of market instability. Ackman did not specify which securities or trades prompted the warning, nor did he disclose any positioning changes at Pershing Square. His remarks add to a broader debate over whether aggressive retail options trading and margin use are inflating risk across equities. Investors will watch upcoming margin-debt data, options volumes and regulatory commentary from the SEC for signs of whether leverage is building further.
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Bill Ackman, Pershing Square Capital Management