Bill Ackman, the chief executive of Pershing Square, believes that investors should look toward 2027 as a landmark year for stock market growth. Speaking recently on CNBC, the billionaire argued that while current conditions feel restrictive, the primary obstacles are temporary geopolitical tensions and stubborn inflation. Specifically, Ackman pointed to the ongoing conflicts involving Russia-Ukraine and Iran as significant drags on global economic momentum. He suggested that once these wars reach a resolution, energy prices will likely plummet, providing much needed relief for inflation and creating a booming environment for equities.
The connection between geopolitics and portfolios has been starkly evident throughout 2026, with U.S. oil climbing seventy two percent and Brent crude surging eighty three percent. These spikes in energy costs have filtered directly into consumer prices, leaving the Federal Reserve in a difficult position regarding interest rates. With inflation remaining stubbornly above the central bank’s target, higher borrowing costs have continued to pressure many sectors of the economy. However, Ackman views this as an overhang that will eventually lift once stability returns to the Middle East and Eastern Europe.
Beyond his macroeconomic outlook, Ackman highlighted several specific companies where he sees immense value despite recent volatility. He described Netflix as a high growth utility currently trading at some of its lowest historical valuations relative to earnings, dismissing critics who worry about its content library. Similarly, he defended his position in Meta Platforms amid short term share price swings following earnings reports. For Ackman, Meta remains significantly undervalued due to its leadership in artificial intelligence agents and its aggressive investment in computing infrastructure.
Perhaps his most aggressive prediction involves Fannie Mae and Freddie Mac, where he maintains a substantial stake. Ackman claimed these assets represent the most asymmetric investment available in today’s market, predicting their values could increase tenfold. He attributed this potential surge to the fact that both entities have rebuilt their capital bases far beyond historical levels, suggesting that the broader market has yet to fully grasp the scale of their financial recovery.