“I hope this will motivate anyone who does not get the vaccine to get the vaccine. I don’t think it’s going to change behavior to any great extent, ”Ackman said in an interview on CNBC’s“ Squawk Box ”. “” You are going to see, in my opinion, a massive economic boom … We are going to have an extremely strong economy in the fall. “
The delta variant causes flare-ups in unvaccinated pockets across the country and leads to increased hospitalizations as cases increase. Ackman, founder and CEO of Pershing Square Capital Management, said the variant is less lethal than other strains and the United States may gain herd immunity faster as more people recover from infections.
The hedge fund manager believes bond yields will trend much higher in the second half of 2021 as the economy continues to recover from the pandemic-induced recession.
“I think the rates are going up. I think short rates are going to rise a lot faster than people think, ”Ackman said. “Coming to the turn of the year… I think we’re going to have significantly higher returns as people realize the economy is going to make a big recovery. “
Ackman said declining Treasury yields on Monday offered investors a buying opportunity. The benchmark 10-year rate fell 7 basis points to 1.22% to a new five-month low.
“Today’s decision… I would borrow as much as possible long-term at a fixed rate based on today’s rates,” Ackman said.
The hedge fund manager bet big on the rebound in the restaurant, retail and hospitality sectors. Its main holdings at the end of the first quarter included Lowe’s, Hilton, Restaurant Brands and Chipotle. He recently took over the shares of Domino’s Pizza following a downturn.
In mid-March, at the height of the Covid-19 crisis, Ackman came to CNBC to warn investors that “hell is coming” and to urge the White House to shut the country down for a month.
Days after the interview, Ackman revealed that his company exited short positions on March 23 as the S&P 500 bottomed out, pocketing more than $ 2 billion in bets against the markets in March.
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