- Ackman said that he was staying long sort duration bonds, including the 1-year and 5-year.
- He mentioned that he had tweeted that the 30-year had gone far enough when it reached 5%, but did not mention investing in longer-duration.
- Ackman mentioned that he believes the fed will cut ay least 75bps in 2024, citing the “real cost of money (referring to the real interest rate, the difference between inflation and interest rates). As inflation falls, Ackman believes the interest rate will need to be cut to avoid the real interest rate going higher.
- Ackman though this would be positive for equities, “as long as they bring down rates fast enough to avoid a meaningful recession.”
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Ackman has been spot on since the beginning of COVID