Famend billionaire investor Leon Cooperman lately expressed a bearish outlook on each the S&P 500 and the housing market.
In an interview with Enterprise Insider, Cooperman mentioned he believes that the S&P 500 will not surpass its present document of about 4,800 factors for a while, stating that shares are overpriced. He additionally predicted a downturn within the housing market as a result of ongoing affordability disaster.
“I made my cash being a bull, however I discover myself considerably pessimistic on the current time,” he advised Insider.
Cooperman pointed to years of near-zero rates of interest and rampant authorities spending as key components that have “pulled ahead demand in a dramatic method,” inflating asset costs and driving up nationwide debt.
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Though he doesn’t imagine we’re in a bubble, he thinks we’re in a “rolling correction” and it’ll “take a very long time for us to work out the issues.”
Cooperman, former head of Goldman Sachs’ asset administration arm, additionally highlighted {that a} bear market has already hit nearly all of shares, with only some Massive Tech names akin to Tesla Inc. TSLA, Nvidia NVDA, and Microsoft MSFT pulling main indexes greater this 12 months.
On the housing entrance, he expects dwelling costs to fall. Rising mortgage charges and an affordability disaster have made many patrons unwilling or unable to pay premium costs for properties and tackle excessive month-to-month mortgage funds.
Cooperman, who has cautioned about shares a number of occasions this 12 months, had beforehand predicted that the S&P 500 might backside round 3,100 factors, or 35% beneath its January 2022 peak.
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Markets Photograph by ImageFlow on Shutterstock
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