Bill Ackman Slams Commerce Secretary Howard Lutnick For Ignoring Stock Market Crash: ‘He And Cantor Are Long Bonds’

Billionaire Investor Bill Ackman has criticized Commerce Secretary Howard Lutnick of having a conflict of interest and being “indifferent” toward the stock market selloff induced by the introduction of tariffs because of the latter’s fund, Cantor Fitzgerald LP’s exposure to bond investors.
What Happened: Ackman, the CEO of Pershing Square Capital Management, L.P., has slammed. Lutnick, who was the former chairman and CEO of Cantor Fitzgerald L.P. by stating that “He (Lutnick) profits when our economy implodes.”
This aligns with the inverse relationship between stocks and bonds during economic crises. When stocks crash, investors often move capital into bonds, driving up bond prices and lowering yields.
As the markets continue to crash after President Donald Trump’s tariffs, the 10-year Treasury yield has fallen to 3.90%. It is the first time that the yield has fallen to this level since before Trump was elected last year in October. Meanwhile, the two-year yield has dropped to 3.45%.
Cantor Fitzgerald, on the other hand, has been a major player in bond markets since its founding in 1945.
“It’s a bad idea to pick a Secretary of Commerce whose firm is levered long fixed income. …Full story available on Benzinga.com

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