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 can be decrease than present ranges one 12 months from now.
Cooperman’s feedback got here sooner or later after the S&P 500 notched yet one more document shut in 2021, ending Thursday’s session at 4,211.47. The broad fairness index has risen roughly 12% 12 months so far and about 43% previously 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 now we have 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 Field.”
“I think the market can be decrease a 12 months from as we speak. 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 person, myself included is aware of when that is going to finish. We simply watch the issues that will usually indicated an finish.”
Cooperman mentioned he considers himself to be “a totally invested bear,” whereas acknowledging the market has currently “executed higher than I’d’ve thought.”
“I do not see the circumstances that will result in a major market decline current,” Cooperman mentioned. “Nevertheless, nevertheless — that is the large nevertheless — I believe we must always acknowledge we’re pulling demand ahead and that the longer-term outlook is just not 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 financial system recovers from the Covid pandemic, whereas stressing that the Fed’s coverage will stay accommodative.
“I believe that Mr. Powell can be shocked by inflation. It isn’t going to be as quiescent and transitory as he thinks. I believe the Fed can be pressured to say one thing earlier than the top of 2022,” Cooperman mentioned.