Leon Cooperman expects stock prices to fall this year and is concerned about rising national debt.
Stocks are already pricing in strong earnings and an improving economic outlook, he said.
The billionaire investor believes that Tesla CEO Elon Musk, the richest person in the world, is paid too much.
Stocks look expensive and are likely to fall this year, the national debt is a ticking time bomb and Elon Musk is being overpaid, Leon Cooperman said.
“If you look at everything that’s happening in the world and you see the market at 21x multiples, it seems too rich to me,” the billionaire investor said. told CNBC Tuesday.
He was referring to the price-to-earnings ratio of the S&P 500, which rose 24% last year and is up another 4% this year to record highs.
Cooperman, who converted his hedge fund Omega Advisors into a family office in 2018, noted that the stock market defied bearish forecasts last year.
“Everyone is positive now, and so I think we may see a decline towards the end of the year,” he said, advising investors to “be careful.”
The former head of Goldman Sachs’ asset management division shrugged Recent profit figures are correct by companies like Meta And Amazonsaying the shares were already pricing in strong corporate earnings and an improved economic outlook.
Fears of a downturn have subsided this year due to robust growth and employment data, inflation falling below 4% in recent months, and the Federal Reserve signaling it will cut interest rates shortly after falling from near zero to well over 5% has been increased. Cooperman suggested the central bank could make two or three cuts this year.
“I’m not calling for a recession, but I am saying that I think the market…