Leon Cooperman sees inventory market decrease a yr from now resulting from tax, fee, inflation pressures

Leon Cooperman on the 2019 Delivering Alpa convention in New York on Sept. 19. 2019. Adam Jeffery | CNBC Billionaire investor Leon Cooperman advised CNBC on Friday he expects the inventory market might be decrease than present ranges one yr from now. Cooperman’s feedback got here in the future after the S&P 500 notched yet one


Leon Cooperman on the 2019 Delivering Alpa convention in New York on Sept. 19. 2019.

Adam Jeffery | CNBC

Billionaire investor Leon Cooperman advised CNBC on Friday he expects the inventory market might be decrease than present ranges one yr from now.

Cooperman’s feedback got here in the future after the S&P 500 notched yet one more report shut in 2021, ending Thursday’s session at 4,211.47. The broad fairness index has risen roughly 12% yr thus far and about 43% prior to now 12 months.

“Let’s face it. The market is going through the truth that taxes are going up, rates of interest are going up, and inflation goes up. And we have now a fairly richly appraised market. So cyclically I am engaged. However I acquired an eye fixed on the exit,” Cooperman stated in an interview on “Squawk Field.”

“I believe the market might be decrease a yr from at this time. However I haven’t got to make that guess now. This isn’t going to finish effectively,” the chairman of the Omega Household Workplace added. “However no one, myself included is aware of when that is going to finish. We simply watch the issues that will usually indicated an finish.”

Cooperman stated he considers himself to be “a totally invested bear,” whereas acknowledging the market has currently “finished higher than I might’ve thought.”

“I do not see the situations that will result in a big market decline current,” Cooperman stated. “Nevertheless, nonetheless — that is the massive nonetheless — I believe we must always acknowledge we’re pulling demand ahead and that the longer-term outlook is just not significantly favorable, for my part.”

Cooperman stated his outlook on potential inflation is completely different than that of Federal Reserve Chairman Jerome Powell. The central banker has repeatedly stated he expects inflation to be “transitory” because the economic system recovers from the Covid pandemic, whereas stressing that the Fed’s coverage will stay accommodative.  

“I believe that Mr. Powell might be shocked by inflation. It isn’t going to be as quiescent and transitory as he thinks. I believe the Fed might be pressured to say one thing earlier than the tip of 2022,” Cooperman stated.



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