3 August 2023
Prominent billionaire investor William Ackman warned of increasing risks in the U.S. economy as he revealed his hedge fund’s significant short position on U.S. 30-year Treasuries. He views this as a necessary protection against potential spikes in long-term rates that could harm the stock market. He fears a potential surge in 30-year Treasury yield to 5.5% in the near future, given the 4.16% climb on Wednesday – the highest of the year. Ackman points to escalating defense costs, energy transitions, and increasing labor power as factors fueling inflation, despite the Fed’s aggressive rate hikes.