Leon Cooperman sees ‘euphoria’ in elements of market, skeptical long run

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Leon Cooperman sees ‘euphoria’ in elements of market, skeptical long run

Billionaire investor Leon Cooperman advised CNBC on Wednesday he believes the inventory market will wrestle to generate significant returns within


Billionaire investor Leon Cooperman advised CNBC on Wednesday he believes the inventory market will wrestle to generate significant returns within the years forward, following its sturdy restoration from pandemic-era lows within the final 10 months.

“I believe the near-term outlook might be OK. Long run, I believe that we’re borrowing from the long run,” Cooperman mentioned on “Squawk Field.”

“Everytime you purchased into the market when it was promoting at the moment a number of of, say, 22 instances or increased, you have by no means actually made any severe cash one yr, three yr, 5 years out. I believe that is what we’re ,” added the chairman of the Omega Household Workplace.

Accommodative financial coverage from the Federal Reserve, together with aggressive fiscal stimulus supplied by Congress in response to the pandemic is simply “pouring extra gasoline within the fireplace” on Wall Road, Cooperman mentioned.

“There is a significant chunk of the market immediately that is in euphoria. You see 50% value strikes. You see a SPAC a minute. That is stuff that is ringing the bell,” Cooperman warned.

As he surveys the market, Cooperman mentioned his method is to “search for worth.” He added, “I do have long-term issues as a result of I believe the insurance policies we’re operating are unsustainable.”

“We have now this push-pull. We have now the push of very, very simulative fiscal and financial insurance policies. Exhausting to combat that presently,” Cooperman mentioned, just some hours earlier than President-elect Joe Biden might be sworn into workplace.

“Then we have now the pull of a brand new administration” that’s more likely to pursue insurance policies akin to increased company taxes and extra regulation, he mentioned, including that he believes these insurance policies may damage the inventory market. “It is a much less pro-business, much less pleasant enterprise setting,” he mentioned.

A frequent critic of progressive Democrats and outgoing President Donald Trump up to now, Cooperman mentioned he voted for Biden within the November despite the fact that it was “towards my very own financial pursuits.” As a substitute, he mentioned he voted “my values, and my values didn’t lie with President Trump.”

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