Leon Cooperman on the 2019 Delivering Alpa convention in New York on Sept. 19. 2019.
Adam Jeffery | CNBC
Billionaire investor Leon Cooperman informed CNBC on Friday he expects the inventory market can be decrease than present ranges one yr from now.
Cooperman’s feedback got here at some point after the S&P 500 notched yet another record close in 2021, ending Thursday’s session at 4,211.47. The broad fairness index has risen roughly 12% yr up to now 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 bought a watch on the exit,” Cooperman mentioned in an interview on “Squawk Box.”
“I believe the market can be decrease a yr from immediately. However I haven’t got to make that guess now. This isn’t going to finish nicely,” 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 might usually indicated an finish.”
Cooperman mentioned he considers himself to be “a completely invested bear,” whereas acknowledging the market has recently “performed higher than I’d’ve thought.”
“I do not see the circumstances that might result in a major market decline current,” Cooperman mentioned. “Nevertheless, nonetheless — that is the massive nonetheless — I feel we must always acknowledge we’re pulling demand ahead and that the longer-term outlook will not be notably favorable, for my part.”
Cooperman mentioned his outlook on potential inflation is totally different than that of Federal Reserve Chairman Jerome Powell. The central banker has repeatedly mentioned 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 feel that Mr. Powell can be stunned by inflation. It isn’t going to be as quiescent and transitory as he thinks. I feel the Fed can be compelled to say one thing earlier than the top of 2022,” Cooperman mentioned.