Billionaire investor Leon Cooperman told CNBC on Wednesday he believes the stock market will struggle to generate significant returns in the coming years after its strong recovery from the lows in the pandemic over the past ten months.
“I think the short-term outlook is probably OK. Long-term, I think we’ll borrow from the future,” Cooperman said in ‘Squawk Box’.
“When you bought in the market when it currently sold multiples of 22 times or higher, you have never made really serious money in one year, three years, five years. I think that’s what we’re looking at,” he added. chairman of the Omega Family Office at.
An accommodative monetary policy from the Federal Reserve, coupled with an aggressive fiscal stimulus provided by Congress in response to the pandemic, is just throwing more fuel into the fire on Wall Street, Cooperman said.
“There’s a significant part of the market today that’s in euphoria. You’re seeing 50% price movements. You’re seeing a SPAC for a minute. These are things that ring,” Cooperman said.
While researching the market, Cooperman said he should ‘seek value’. He added: “I have long-term problems because I think the policies we are pursuing are not sustainable.”
“We have this pressure-pull. We have the pressure of many, many simulating fiscal and monetary policies. At the moment it is difficult to fight it,” Cooperman said, just hours before President-elect Joe Biden, a democrat, will be sworn in. office.
“Then we have the move of a new government” that is likely to follow policies such as higher corporate taxes and more regulation, he said, adding that he believes the policy could harm the stock market. “It’s a less business-like, less-friendly business environment,” he predicted.
Cooperman, who in the past has been a regular critic of progressive Democrats and outgoing President Donald Trump, said he voted for Biden in November, even though it was ‘against my own economic interests’. Instead, he said he was voting “my values, and my values do not lie with President Trump.”