In a recent interview with CNBC, Bill Ackman pointed out that ongoing geopolitical conflicts, particularly the Ukraine-Russia and Iran wars, along with persistent inflation and high interest rates, are dampening what he describes as a 'booming market environment.' He expressed optimism that once these conflicts subside, particularly with a potential resolution in Ukraine, energy prices could decrease significantly, which would positively impact inflation and the overall market.
Ackman noted that U.S. oil prices have surged 72% in 2026, contributing to inflationary pressures, as evidenced by a 3.7% year-over-year increase in consumer prices reported in September. This inflationary environment complicates the Federal Reserve's efforts to maintain interest rates, as higher energy costs could necessitate further rate hikes.
On the investment front, Ackman sees long-term potential in Netflix, despite its recent stock drop following disappointing advertising and revenue guidance. He believes the stock is undervalued at 18 times earnings and expects it to achieve earnings growth in the mid to high teens.
Additionally, he views Meta Platforms as a core holding, despite a 6% drop in its shares after a strong earnings report. Ackman argues that Meta's advancements in artificial intelligence position it well for future growth, making it an undervalued asset in his portfolio