Bill Ackman told spooked investors to get over the Iran war and buy Fannie and Freddie. Stocks surged 40% the next day

Fannie Mae and Freddie Mac, the two government-sponsored businesses designed to prop up mortgages, ripped on Monday after billionaire investor Bill Ackman told investors in a late Sunday X post to stop worrying about the war in Iran and start buying.

“Some of the highest quality businesses in the world are trading at extremely cheap prices,” Ackman wrote. “Ignore the MSM [mainstream media]. One of the most one-sided wars in history that will end well for the U.S. and the world. And we have the potential for a large peace dividend.”

Then he added, almost as an aside: “Fannie and Freddie are stupidly cheap. Asymmetry at its best. They could be a 10X and it could happen soon.”

Ackman’s tweet was the only obvious catalyst as Fannie Mae surged as much as 41% in Monday trading, while Freddie Mac climbed as much as 34%. These were the largest single-day moves for each stock since May of last year, when Trump floated the idea of privatizing the two entities. 

Ackman’s post clearly touched a nerve. Investors are feeling “extreme fear” according to CNN’s Fear & Greed Index, as the Iran war, now in its sixth week, Read Entire Article