Leon Cooperman on the 2019 Delivering Alpha convention in New York on Sept. 19, 2019.
Adam Jeffery | CNBC
Billionaire investor Leon Cooperman mentioned he stays a bear with little curiosity within the broader inventory market, partly as a result of it is underestimating the chance of a fiscal disaster.
“I am of the view that we borrow from the longer term with very profligate fiscal coverage,” Cooperman mentioned at CNBC’s Monetary Advisor Summit. “In the end, we could have a disaster in public sector finance, and the market shouldn’t be discounting a disaster. General, I count on little or no from the market.”
The chair and CEO of the Omega Household Workplace mentioned the unprecedented stimulus has pulled demand ahead and created a man-made state of affairs within the financial system. The nationwide debt of the U.S. not too long ago reached a historic milestone by passing $33 trillion for the primary time.
Given his long-term pessimism, Cooperman is not shopping for the inventory market benchmarks. As a substitute, he is trying to find bargains in particular person names.
S&P 500
“The market has been, as you recognize, extraordinary bifurcated. If you happen to take out the Magnificent 7, the general market has executed nothing and possibly it is down a bit bit or flat,” Cooperman mentioned. “I am not within the S&P. I am all for particular person shares.”
He mentioned he could be very shocked if the S&P 500 climbs above 4,600 anytime this yr. The massive-cap benchmark continues to be up about 13% this yr, buying and selling round 4,344.
The veteran investor mentioned his recommendation for what to purchase proper now could be, so as of choice, his favourite low cost shares, then short-dated Treasurys, and his least favourite could be long-term bonds. A few of his favourite worth names are Canadian vitality producers Tourmaline Oil and Paramount Sources.
