Ackman Says Market Is Back to 'Casino' Mode With Leverage at 95%

Bill Ackman says the stock market has slipped back into what he calls a casino-type era. The hedge fund manager told CNBC on Tuesday that leverage is running at 95%, and he argued those conditions aren't doing the broader economy any favors.

His read: the tape keeps breaking. Ackman said every few days the market feels broken, and that stocks are trading at prices that make no sense to him. For long-term investors able to buy at what he called a stupid price, that's good. For the country, he doesn't think so.

Ackman runs Pershing Square Capital Management, which has already shown its hand elsewhere in the market. The firm previously disclosed purchases of 2.1 billion dollars in Microsoft shares and 1.35 billion dollars in Amazon stock, according to Breaking The News.

The backdrop for his comments was a mixed session. The S&P 500 sat at 7566.32, up 0.32%, and the Nasdaq 100 climbed 0.77% to 28203.06. The Dow Jones Industrial Average lagged, down 0.56% at 51701.95, while Germany's bGER40 slipped 0.39% to 25908.97 and the UK100 fell 1.07% to 10651.45.

Elsewhere, gold eased 0.51% to 3925.51, and the dollar held firm against the yen, with USD/JPY at 158.5470, up 0.38%. US exchanges had opened mostly higher as appetite for risk crept back, with investors also watching the midterm elections and a heavy run of quarterly earnings.

Ackman's warning lands as leverage and stretched valuations stay a live talking point on Wall Street. Whether the casino stays open is the question traders will keep debating.