Billionaire investor Bill Ackman of FTSE 100 investment company Pershing Square Holdings (PSH) believes markets could have a better time in 2023 than in 2022. He says: ‘Predicting the market in the short-term is a sucker’s game’ but believes the latter part of next year could be when stocks pick up.

In a series of exclusive interviews with Shares’ editor Daniel Coatsworth, Ackman outlined his belief US interest rates could hit 5% in the short term and stay around that level for most of 2023.

‘Once the market starts to see inflation taper, they can begin to predict that the Federal Reserve is going to take its foot off the brake a bit and start taking down rates. I think that will be a perceived and probably likely buying opportunity. That’s a potential catalyst more towards the end of 2023,’ he comments.

Ackman points out that the Ukraine war is still ongoing, energy prices remain high, and the general market backdrop is challenging.

‘We try to find businesses that are resilient, we call them super durable growth companies. Regardless of what’s going on in the world, people are going to listen to music which is why we like owning Universal Music (UMG:AMS). We think people will continue to renovate their homes and in an interest rate environment where people can’t move, they will want to upgrade their own homes and will go to (portfolio holdings) Home Depot (HD:NYSE) and Lowe’s (LOW:NYSE).’

Pershing Square Holdings has held up relatively well with a mere 2% year-to-date share price decline versus a 17% decline in the S&P 500 and a 28% slump in the Nasdaq. However, its shares trade on a 31% discount to net asset value, much to the frustration of the manager.

Ackman gives his thoughts on what it might take to narrow the discount in this video. In a further video, the manager elaborates on why he believes the consumer-facing stocks in his portfolio should cope with a recession.

Exclusive Bill Ackman interviews

Video 1: What’s needed to improve Pershing Square Holding’s performance?

Video 2: Are you worried about a recession hurting your investments?

Video 3: What’s your outlook for 2023?

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