Rick Wilking / Reuters
Billionaire investor Leon Cooperman warned in an interview with CNBC monday that returns from the inventory market would likely be “unsophisticated” for some time after this year’s immediate uptick.
The stock market recovered from its coronavirus pandemic in March in record time, returning to a bull market driven by the Fed’s commitment to keep interest rates low for a long time, according to Cooperman.
“In the market as a whole, we have a higher demand. I would expect long-term returns to not be a symmetrical impression for a long time,” Cooperman said.
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Cooperman’s conservative vision is based on the huge debts he sees accruing in the United States. “We arrived in 2020 with a fully contracted economy, but we had a trillion-dollar deficit. And now we’re accumulating a lot of debt in the most sensible way,” Cooperman said.
He added that the stock market uptick, which led through the Federal Reserve, may lose momentum as the pandemic coronavirus recession continues, hurting the U.S. economy and business. He also noted that Japan and Europe have had interest rates 0 or negative for some time, however, their price-earnings ratios are lower than those of the United States.
“What other people want to perceive is that the Fed is implementing this 0 interest rate policy not because things are going well in the economy,” Cooperman said. “They have an interest rate policy of 0 because things are going well in the economy.”