Wall Street Billionaire Leon Cooperman Warns Market Is ‘Not Going To End Well’ – But He Still Likes These 5 Investments

SourceForbes
SectorEconomy
CountryMiddle east

The hedge fund titan worries about the market’s long-term outlook but is still betting on select securities. Billionaire investor Leon Cooperman is cautious about the stock market’s prospects in 2021.  While the 77-year-old hedge fund titan still sees opportunities in the market, he warns of excessive speculation and signs of “euphoria.” Cooperman is especially worried about the long-term market outlook given rising U.S. debt levels and the federal deficit. “I think we’re borrowing from the future,” he says. “The Federal Reserve is forcing people out on the risk curve and driving stock prices (up) … it’s not going to end well.” While Cooperman describes the Federal Reserve as “driving the bus” by promising low interest rates for the foreseeable future, business confidence and economic growth are unlikely to improve going forward, he argues.

“Price-to-earnings ratios are a function of those three things—and in my opinion, two out of the three are negative right now.” A legendary investor, Cooperman spent 25 years at Goldman Sachs before founding his hedge fund, Omega Advisors, in 1991. The fund quickly became known for its strong performance, generating annualized returns of around 12% through 2018, when Cooperman turned it into a family office. He is worth $2.5 billion, according ...read more...