Billionaire Bill Ackman: Trump Could Make These 2 Stocks Big Winners

Billionaire investor Bill Ackman has a history of making bold predictions, and his latest one involves President-elect Donald Trump. Ackman believes that Trump's policies could lead to significant gains for two stocks in his portfolio: Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FMCC). Both stocks have already delivered gains of more than 6x in the last 12 months, and Ackman expects them to soar even higher under a Trump administration.

Ackman's optimism is rooted in the potential end of the federal conservatorship for Fannie Mae and Freddie Mac. The two government-sponsored enterprises (GSEs) have been under federal control since 2008, following the financial crisis. Ackman believes that Trump's pro-business approach and deregulatory agenda could pave the way for the GSEs to exit conservatorship, leading to substantial shareholder gains.

In a recent post on X (formerly known as Twitter), Ackman outlined a scenario in which Fannie Mae and Freddie Mac could come out from under federal conservatorship within the next two years. He envisions an initial public offering (IPO) for both GSEs in 2026 at around $34 per share, which would reflect a nearly 5.5x gain for Fannie Mae and a 6x gain for Freddie Mac.

Ackman's confidence in Trump's ability to make these stocks big winners is not without reason. During Trump's first term in office, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite soared by 57%, 70%, and 142%, respectively. Trump's efforts to lower the corporate income tax rate and encourage deregulation lit a fire on Wall Street.

However, it's essential to consider the potential risks and challenges in Ackman's proposed scenario. The federal conservatorship of Fannie Mae and Freddie Mac has been a contentious issue for years, and any changes to their status would likely face significant political and regulatory hurdles. Additionally, the specific details of Trump's policies and their impact on the GSEs remain uncertain.

In conclusion, Bill Ackman's prediction that Donald Trump could make Fannie Mae and Freddie Mac big winners is an intriguing possibility. While the potential gains are substantial, investors should remain cautious and monitor the situation closely as it unfolds. The ultimate outcome will depend on various factors, including Trump's policies, the political landscape, and the broader economic climate.