Pershing Square’s Bill Ackman does not expect the global spread of delta Covid variants to have a significant impact on economic reopening.
SPY today is down -1.84%.
- Ackman says the outbreak of delta variants could motivate more people to take vaccines, allowing the global economies to pick in the fall.
- Despite causing an increase in vaccinations, the investor says the delta variant is less deadly and people could achieve herd immunity as they recover from the infections faster.
- The investor expects higher interest rates to roar back, with the bond yields going up in the second half of the year following economic recoveries.
- With Treasury yields down by 7 basis points on Monday to a five-month low of 1.22%, Ackman says the slide represents a buying opportunity for investors.
- Ackman is optimistic of big rebounds in hotel, restaurant, and retail industries, which were hard hit during the pandemic.