Billionaire investor Bill Ackman has attributed the recent dramatic volatility across rates, currencies, and equities to “forced selling” by highly leveraged market participants, rather than fundamental economic shifts.
What Happened: In an X post, Ackman argued that investors and market commentators are overinterpreting short-term market movements, mistaking technical liquidations for signals of underlying economic or policy changes.
Ackman believes that the significant leverage prevalent in the market is the primary culprit. He highlighted the stark contrast in permitted leverage – up to 10:1 for equities and a staggering 100:1 for Treasuries and currencies.
This high degree of leverage, he explains, makes traders particularly vulnerable to margin calls and forced unwinding of positions during periods of market stress, leading to amplified and potentially misleading price swings.
“I believe that it is much more likely that recent sharp moves in these asset classes is due to highly leveraged market participants …
Full story available on Benzinga.com
Billionaire investor Bill Ackman has attributed the recent dramatic volatility across rates, currencies, and equities to “forced selling” by highly leveraged market participants, rather than fundamental economic shifts.
What Happened: In an X post, Ackman argued that investors and market commentators are overinterpreting short-term market movements, mistaking technical liquidations for signals of underlying economic or policy changes.
Ackman believes that the significant leverage prevalent in the market is the primary culprit. He highlighted the stark contrast in permitted leverage – up to 10:1 for equities and a staggering 100:1 for Treasuries and currencies.
This high degree of leverage, he explains, makes traders particularly vulnerable to margin calls and forced unwinding of positions during periods of market stress, leading to amplified and potentially misleading price swings.
“I believe that it is much more likely that recent sharp moves in these asset classes is due to highly leveraged market participants …
Full story available on Benzinga.com
Billionaire investor Bill Ackman has attributed the recent dramatic volatility across rates, currencies, and equities to “forced selling” by highly leveraged market participants, rather than fundamental economic shifts.
What Happened: In an X post, Ackman argued that investors and market commentators are overinterpreting short-term market movements, mistaking technical liquidations for signals of underlying economic or policy changes.
Ackman believes that the significant leverage prevalent in the market is the primary culprit. He highlighted the stark contrast in permitted leverage – up to 10:1 for equities and a staggering 100:1 for Treasuries and currencies.
This high degree of leverage, he explains, makes traders particularly vulnerable to margin calls and forced unwinding of positions during periods of market stress, leading to amplified and potentially misleading price swings.
“I believe that it is much more likely that recent sharp moves in these asset classes is due to highly leveraged market participants …Full story available on Benzinga.com Read MoreBill Ackman, Donald Trump, Equities, Government, leveraged, News, QQQ, Scott Bessent, SPY, Tariff, tariffs, Treasuries, Treasuries, Economics, Markets, Analyst Ratings, ETFs, General, SPY, US78462F1030, QQQ, US73935A1043, News, Equities, Government, Treasuries, Economics, Markets, Analyst Ratings, ETFs, General, Benzinga Markets
